+
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
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read full article Click Here ..

Next Story
Real Estate

Glass, Reframed!

Glass façades, quintessential aesthetic building envelopes globally, have been widely adopted in India as well. But when the focus is high-performance building systems that deliver energy efficiency, comfort and architectural identity, glass isn’t the only preference. Combination solutions, involving glass and some other material, improve façade outcomes. Some combinations come at comparable prices, some at a higher price. Here is a selection of performance-oriented solutions...To read the full story Click Here ..

Next Story
Infrastructure Urban

Beyond Building Faster

India’s cities are expanding at an unprecedented pace, bringing new infrastructure and development opportunities while also intensifying challenges around mobility, public spaces, liveability and supporting infrastructure. The question, therefore, is not simply whether India can build faster, but whether it can build cities that work better.At a CW webinar, Are We Designing Better Cities – or Just Building Faster?, moderator Ar. Samir Shaikh, Founding Principal, AR&UD Studio, brought together perspectives from design, development, master planning and technology...To read the full artic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code