While Kaisa didn’t disclose more particulars for the rationale behind the suspension, it had mentioned the day prior to this that it was dealing with “unprecedented pressure” on its funds.
Kaisa didn’t instantly reply to a request for additional remark.
Those feedback led the corporate’s shares to crash about 15% on Thursday. Its inventory has already cratered by greater than 70% this yr.
Kaisa confronted a setback final week as Fitch and S&P Global Ratings each downgraded the corporate, citing debt considerations.
In a report, S&P analysts wrote that they considered “Kaisa’s capital structure as unsustainable given the company’s sizable near-term debt maturities, weakening liquidity, and inadequate free cash flow through 2022.”
They estimated that about $3.2 billion of the corporate’s offshore notes would come due over the yr to October 2022, suggesting that it “will need to rely on asset disposals and successfully improving its capital structure to avoid defaulting.”
According to the Securities Times, Kaisa mentioned Thursday that it had been “actively raising funds … and doing its best to solve its current problems.”
But information of the corporate’s woes rattled the sector on Friday. The Hang Seng Mainland Properties Index, which tracks mainland Chinese firms in the sector, fell 2.8% in Hong Kong, following weeks of stress on these shares.
But Evergrande faces but another check Saturday, as another offshore bond fee comes due, famous Jeffrey Halley, senior market analyst for Asia Pacfic at Oanda.
— CNN’s Beijing bureau contributed to this report.
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