A subsidiary of the company missed a payment for a financial product.
(Photo: Reuters)
Tokyo Mixed company outlooks spoil Japan investors’ buying mood. The Nikkei index fell 0.6 percent to 29,612 points on Friday. The Shanghai Stock Exchange also gave way, losing one percent to 3,493 points. It suffered from price losses of the coal miners, whose industry index slipped by more than four percent due to falling prices for this energy source.
The Japanese companies have raised their business targets less than hoped, said Shigetoshi Kamada, chief analyst of the brokerage house Tachibana. “Investors look at full year results and beyond. It is difficult to buy industrials these days because their businesses could be affected by rising material costs and other factors.”
In this context, Toyota warned of production downtimes due to the global chip shortage. The automaker’s shares then fell 1.4 percent. The titles of rival Honda even slipped by a good three percent. The company slashed its full-year target by 15 percent for the same reasons.
Meanwhile, trading in shares in Chinese construction company Kaisa Group Holdings and three of its units was suspended on Friday. The company previously announced that a subsidiary had missed payment for a financial product. According to a report by the Hong Kong Stock Exchange, the shares of Kaisa were blocked accordingly on Friday.
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The construction company stated that trading was suspended pending an inside information announcement. Real estate management arm Kaisa Prosperity, health care company Kaisa Health and construction machinery supplier Kaisa Capital Investment have also been suspended in anticipation of inside information from their main shareholder, according to lunch break documents.
Kaisa stocks and bonds plunged Thursday after the company said it was under “unprecedented liquidity pressures” from adverse factors such as credit downgrades and a difficult real estate market environment.
Kaisa’s troubles come amid a worsening liquidity crisis in the Chinese real estate sector. The lack of payments for wealth management products comes roughly two months after the China Evergrande Group faced protests from investors demanding money for similar overdue offers.
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