The Chinese real estate developer is wavering – and is fueling fears of a major real estate crisis.
(Photo: Reuters)
Frankfurt, Beijing, Düsseldorf In China, after Evergrande, another real estate company is sounding a loud alarm because of impending liquidity bottlenecks: The Kaisa Group, number 25 on the Chinese market, asked its creditors to postpone payments late on Monday evening. In addition, the rating agency Fitch downgraded Kaisa’s creditworthiness to junk level on Tuesday.
In a statement, Kaisa said, “We sincerely ask investors to give the Kaisa Group more time and patience.” In order to raise money, the group wants to accelerate the sale of assets in Shanghai and Shenzhen and use the proceeds for repayments and the sale of existing real estate drive forward.
The turbulence in China’s real estate market has been keeping investors in suspense around the world for weeks. It was triggered by the crisis of Evergrande, the second largest Chinese real estate developer, which, according to official figures, has debts of more than 300 billion dollars.
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