Kaisa Units Shares Face Volatility After Trading Resumes
By Clarence Leong
The shares of the units of Kaisa Group Holdings Ltd. saw volatility in Hong Kong after trading resumed for the first time since Nov. 5, as investors remained concerned about the indebted real estate developer’s liquidity and ability to repay its debt.
Tuesday at noon, Kaisa Capital Investment Holdings Ltd. and the property management subsidiary Kaisa Prosperity Holdings Ltd. each plunged more than 13% to HK $ 0.40 and HK $ 13.06, respectively, while Kaisa Health Group Holdings Ltd. jumped 29% to HK $ 0.13.
In separate documents filed on the Hong Kong Stock Exchange on Monday evening, the units said they had not received any financial assistance from their parent company and that “the liquidity problems faced by Kaisa Holdings would not have any significant negative impact “on their operations, which are currently Ordinary.
Kaisa Prosperity said she continues to receive payments for services provided to Kaisa Group subsidiaries and associates, adding that she “has not experienced any significant delay in receiving these payments.”
Revenue from providing these services represented less than half of Kaisa Prosperity’s total revenue for the six-month period ended June, the property management company said.
Trading in Kaisa Group shares has been suspended since November 5, pending the publication of inside information.
Shares of Kaisa Group, one of the Chinese real estate sector’s biggest borrowers in international bond markets, fell to all-time low earlier this month after the company missed a payment on a management product. heritage and said it was facing “unprecedented pressure on its liquidity.”
Kaisa recently said he would speed up asset disposals to meet investor obligations.
Write to Clarence Leong at firstname.lastname@example.org