Shares in Chinese developer Kaisa were suspended yesterday after liquidity issues led to missed payments.
In an echo of fellow developer Evergrande, the company on Thursday said it was experiencing “unprecedented pressure on its liquidity”.
Kaisa stated in a Hong Kong stock exchange filing on Friday that its shares had been suspended, as were those of several of its subsidiaries, without citing a reason.
Its shares fell by 15% on Thursday, while its bonds maturing next year are trading at 30 cents on the dollar.
Last week, rating agency S&P downgraded Kaisa to CCC+. It said it viewed the developer’s capital structure as “unsustainable” because of “the company’s sizeable near-term debt maturities, weakening liquidity, and inadequate free cash flow through 2022”.
