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Kaisa Shares Slide as Chinese Developer Delays Earnings

Due to the delay, Kaisa shares will be suspended from trade from April 1 as required by the Hong Kong Stock Exchange’s listing rules, the Chinese developer said in a filing


Kaisa logo
Kaisa, the second-largest dollar bond issuer among China's property developers after China Evergrande Group, is restructuring its $12 billion offshore debt after defaulting on some bonds last year. Photo: Reuters.

Cash-strapped Chinese developer Kaisa Group said a lockdown in Shenzhen had meant audit work has not been completed and it would not be able to publish its financial results by March 31, sending its shares tumbling.

Due to the delay, its shares will be suspended from trade from April 1 as required by the Hong Kong stock exchange’s listing rules, it said in a filing late on Tuesday.

The shares were down 4% in Wednesday morning trade, compared to a 1.5% rise for the main Hang Seng Index.

Kaisa, the second-largest dollar bond issuer among China’s property developers after China Evergrande Group, is restructuring its $12 billion offshore debt after defaulting on some bonds last year.

In the filing, the firm said it has been working with its legal and financial advisors in the past few months to formulate a solution “for the benefit of all stakeholders” and ease its current liquidity issues.

It has also entered into “constructive dialogue” with its creditors, it added.

 

  • Reuters with additional editing by Sean OMeara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.