China’s Kaisa Group may be another Evergrande, analysts fear. They face liquidity problems and the group must repay hundreds of millions of dollars in bonds by the end of the year.
Trading in Kaisa Group shares on the Hong Kong Stock Exchange was suspended on Friday after it became clear that the company had liquidity problems. In addition, Reuters reported that Kaisa was looking for a buyer for its real estate asset management subsidiary Kaisa Property.
According to analysts, Kaisa Group may become another Evergrande, and the real depth of the problems of the entire Chinese development sector, which is suffering from a heavy debt burden, is shown. Kaisa Group alone is due to repay $ 400 million in bonds with a coupon of over $ 59 million by the end of the year. In the next twelve months, it has to repay additional bonds worth around $ 3.2 billion.
Kaisa reportedly plans to sell its assets in Shenzhen, mostly commercial real estate, valued at less than $ 13 billion. Agetura told Reuters that it intends to get rid of them by the end of next year. However, the group owns nearly a hundred other projects in the same city for nearly $ 96 billion.
