Chinese real estate firm Kaisa Group at risk of default
Real Estate

Chinese real estate firm Kaisa Group at risk of default

After China’s real estate major Evergrande Group faced a debt repayment deadline, another realty firm Kaisa Group is at risk of default, increasing fears of further issues in the country's embattled property sector.

On Friday, shares of Kaisa Group, a Shenzhen-based company, were halted from trading in Hong Kong. The firm's subsidiaries, which also were stopped from trading, indicated a pending declaration about the group in stock exchange filings.

The firm told the media regarding its liquidity issues and confessed to missing a payment associated with its wealth management products. Kaisa said that it was facing many headwinds, like a challenging real estate market environment and the recent lowering of its credit ratings by international agencies.

The news comes as investors continue to worry over the crisis at Evergrande, China's most indebted firm. The firm has made international headlines since September, after warning that it could default on its enormous debts of over $300 billion.

Another real estate company Modern Land too is struggling to pay its debts. In recent weeks, a slew of developers has revealed their cash flow problems, asking lenders for more time to repay them or warning of potential defaults. Kaisa encountered a delay last week as Fitch and S&P Global Ratings both downgraded the firm, indicating debt concerns.

Image Source

Also read: China braces for Evergrande Group downfall: Wall Street Journal report

After China’s real estate major Evergrande Group faced a debt repayment deadline, another realty firm Kaisa Group is at risk of default, increasing fears of further issues in the country's embattled property sector. On Friday, shares of Kaisa Group, a Shenzhen-based company, were halted from trading in Hong Kong. The firm's subsidiaries, which also were stopped from trading, indicated a pending declaration about the group in stock exchange filings. The firm told the media regarding its liquidity issues and confessed to missing a payment associated with its wealth management products. Kaisa said that it was facing many headwinds, like a challenging real estate market environment and the recent lowering of its credit ratings by international agencies. The news comes as investors continue to worry over the crisis at Evergrande, China's most indebted firm. The firm has made international headlines since September, after warning that it could default on its enormous debts of over $300 billion. Another real estate company Modern Land too is struggling to pay its debts. In recent weeks, a slew of developers has revealed their cash flow problems, asking lenders for more time to repay them or warning of potential defaults. Kaisa encountered a delay last week as Fitch and S&P Global Ratings both downgraded the firm, indicating debt concerns. Image Source Also read: China braces for Evergrande Group downfall: Wall Street Journal report

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code