FILE PHOTO: A construction site by Chinese property developer Kaisa Group is seen at an area of downtown Shanghai, February 17, 2015. REUTERS/Carlos Barria
November 4, 2021
HONG KONG (Reuters) – Shares of Chinese property developer Kaisa Group plunged more than 14% on Thursday to an all-time low as poor October sales heightened worries about a liquidity crunch at the debt-strapped firm.
Kaisa said late on Wednesday its October contracted sales dropped 30.5% to 8.195 billion yuan ($1.28 billion) from a year ago, while sales in the first 10 months rose 23%.
The Shenzhen-based developer has the most offshore debt coming due over the next one year of any Chinese developer, after embattled China Evergrande Group.
Kaisa, which was downgraded by rating agencies last week, has around $3.2 billion in offshore senior notes due in the next 12 months, with the next maturity worth $400 million falling on Dec. 7.
It is seeking buyers for its Hong Kong-listed property management unit, Kaisa Prosperity Holdings Ltd and two residential sites in the city, Reuters reported last week.
The worsening health of China’s $5 trillion property sector, a key economic growth driver, is testing Beijing’s resolve to press on with painful structural reforms such as reducing high debt levels.
(Reporting by Clare Jim; Editing by)
