On Friday, shares in Kaisa and three of its business units were suspended from trading.
(Photo: Bloomberg)
Shanghai Chinese real estate developer Kaisa needs more time to resolve its liquidity problems. “We sincerely ask investors to give the Kaisa Group more time and patience,” said the Shenzhen-based company on Monday evening.
To raise money, Kaisa wants to accelerate the sale of assets in Shanghai and Shenzhen and use the proceeds for repayments as well as the sale of existing properties.
The company’s troubles come amid worries over a worsening liquidity crisis in China’s real estate sector, which has resulted in a series of foreign debt defaults, credit downgrades, and property developer sell-offs in recent weeks.
After the ailing China Evergrande, which is struggling with liabilities of more than $ 300 billion, Kaisa has the highest foreign debt of any Chinese property developer due in the coming year.
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On Friday, shares in Kaisa and three of its business units were suspended from trading after a subsidiary was unable to service a payment due to Chinese investors. A Chinese State Council think tank met with real estate developers and banks in Shenzhen on Monday to find a solution for the real estate sector, a person familiar with the matter told Reuters. According to Insider, representatives from China Vanke, Ping An Bank, China Citic Bank, China Construction Bank and CR Trust also took part in the talks, in addition to Kaisa.
More: Chinese developer Kaisa missed payment.