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Kaisa Prosperity Shares Fall, Creditors Yet to Receive Interest -Breaking

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Shares in Kaisa Prosperity Holdings Ltd. (HK:), the listed property management arm of troubled Chinese property developer Kaisa Group Holdings Ltd.

Kaisa Prosperity shares plunged 13.51 percent to HK$13.06 ($X), at 11:31 ET (4:31 GMT), after dropping as high as 17%.

Kaisa Capital Investment Holdings Ltd. was also reopened for trading Tuesday by two other Kaisa Group units. Kaisa Capital shares rose 28.87%, to HK$0.125. Kaisa Health shares fell 13.04% to HK$0.4.

The trading in the three units was stopped in November 2021. Kaisa Group shares were also suspended. The developer is still struggling with debt, and some creditors are yet to receive the bond interest due this week.

China’s fellow property developer Evergrande Last week, Group (HK) narrowly avoided default by making a final-minute payment

The Chinese junk currency bonds, however, are stable as they bet on the government relaxing its policy to alleviate concerns that property companies will default.

The notes are yielding less than 20%, down from a high of almost 25%, while China’s junk dollar market erased its November losses according to a Bloomberg index tracking the market.

Chinese state-owned companies are preparing to flood the market with issuances of yuan bonds. China Merchants Shekou Industrial Zone Holdings Co., Poly Developments & Holdings Group Co. and Bright Real Estate Group Co. have been cleared to sell a combined CNY8.6 billion ($1.35 billion) of local bonds on the interbank market throughout the week.

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