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Kaisa says trying to solve liquidity issues, pleads for 'more time and patience'

Published 11/08/2021, 07:18 PM
Updated 11/08/2021, 07:30 PM
© Reuters.

SHANGHAI (Reuters) -Chinese property developer Kaisa Group Holdings Ltd said it is taking measures to solve its liquidity issues and was consulting investors in wealth management products about better payment solutions.

The company said in a statement on its official WeChat account that it was accelerating asset disposals in Shanghai and Shenzhen and using the proceeds for repayments, as well as accelerating its sales of existing properties.

"We sincerely ask investors to give Kaisa Group more time and patience," it said late on Monday.

On Friday, shares of Kaisa and three of its units were suspended from trading one day after an affiliate missed a payment to onshore investors, as China's snowballing property debt crisis jolts more developers.

Kaisa's troubles come amid concerns about a broadening liquidity crisis in the property sector, with a string of offshore debt defaults, credit rating downgrades and sell-offs in the developers' shares and bonds in recent weeks.

Kaisa has the most offshore debt coming due over the next year of any Chinese developer after embattled China Evergrande Group (3333.HK), which is reeling under more than $300 billion in liabilities.

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