image
Subscribe To Newsletter
[newsletter_signup_form id=1]
Connect with us
Totalityre

International

Shares Of Kaisa Prosperity Services Unit Fell As Trading Resumes

Published

on

Trading in Kaisa Group and its three units listed in Hong Kong were suspended on Nov. 5 pending “inside information” from the company. Kaisa Group remains suspended, while the three units resumed trading on Tuesday.

Shares in Kaisa Prosperity, a property services unit of Chinese developer Kaisa Group, fell by 10.6% on Tuesday as trading resumed a day after it said the parent company’s liquidity issues would not impact its operations.

Trading in Kaisa Group and its three units listed in Hong Kong were suspended on Nov. 5 pending “inside information” from the company. Kaisa Group remains suspended, while the three units resumed trading on Tuesday.

Investors became concerned about Kaisa Group’s liquidity after it missed payments on some wealth management products at home early this month.

The Shenzhen-based developer, which has the most offshore debt of any Chinese developer after China Evergrande Group, has also likely missed coupon payments totalling over $59 million due last Thursday and Friday, rating agency Fitch said.

Kaisa did not immediately respond to the request for comment.

Fitch downgraded Kaisa’s Long-Term Foreign-Currency Issuer Default Rating to “C” from “CCC-” on Tuesday on the payments it considered missing.

One bondholder told Reuters he has not received the payment for both bonds yet, which both have a 30-day grace period.

Last week, Kaisa pleaded for help from creditors and said it will not pay interim dividends.

Kaisa Prosperity and two other units said in separate filings late on Monday their business operations were normal.

They said they had not received financial assistance from the parent company so any liquidity issues it faced would not have any material adverse impact on their operations.

Kaisa Health, which focuses on dental prosthetics and healthcare, rose 25.8% while Kaisa Capital dropped 10.9%. The Hang Seng Index gained 1.3%.

Source: Reuters

(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)

ALSO READ: JC World Hospitality Directors Arrested For Misappropriating Funds

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2021 RealtyNXT | All Rights Reserved.