IMAGE SOURCE, REUTERSFresh concerns have been raised about China’s property sector as Kaisa Group has become the latest developer to miss a payment to investors.
Kaisa said it was facing unprecedented pressure on its finances due to a challenging property market. It comes as rival developer Evergrande Group is still reeling under the weight of more than $300bn (£222bn) of debt.
The crisis at Evergrande has triggered fears that its potential collapse could send shockwaves through global markets. Meanwhile, Evergrande has sold a UK-based asset as it faces another payment deadline on Saturday.
Trading in shares of Kaisa Group and three of its units was halted in Hong Kong on Friday, after one of its businesses missed a payment on a wealth management product.
Before the suspension, Kaisa, which has a market value of about $1bn, saw its shares hit a record low on Thursday after falling by 15%.
The Shenzhen-based developer said on Thursday that it is facing unprecedented pressure on its finances due to a challenging property market and downgrades by rating agencies, which makes it more difficult for it to borrow money.
Source: bbc.com
