Trading in shares of embattled Chinese developer Kaisa Group Holdings was suspended on Wednesday, according to the Hong Kong stock exchange.

Trading in shares of Chinese developer Kaisa suspended: Report

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

World Business Watch: Kaisa, units trading suspended as debt crisis routs Chinese developers' shares

Kaisa Group Holdings Ltd, a Chinese property developer said on Thursday that its finance unit had missed a payment on a wealth management product (WMP). This has added to worries about cash crunch at the debt-strapped company.

This has come amid concerns over health of China's real estate market in light of Evergrande crisis.

Kaisa, the Shenzhen-based developer, which provides a guarantee for the wealth management product, said in a statement it is facing unprecedented liquidity pressure due to a challenging property market and rating downgrades.

It said it was raising funds to ease the pressure by measures including speeding up asset sales. It is ranked as the 25th largest developer in the country by home sales.

Kaisa has the most offshore debt coming due over the next year of any Chinese developer after embattled China Evergrande Group, which is reeling under more than $300 billion in liabilities.

The worsening health of China's $5 trillion property sector, a major economic growth driver, is testing Beijing's resolve to press on with painful structural reforms such as reducing high debt levels in the sector.

Shenzhen regulators will hold a meeting on Friday to discuss liquidity issues at Kaisa and its peer Fantasia, local media Cailianshe reported. Fantasia had defaulted on an offshore bond tranche last month.

Fantasia and Kaisa declined to comment. The Shenzhen central sub-branch of People's Bank of China (PBOC) could not be reached for comment.

Kaisa senior management including group chairman Kwok Ying Ching spoke to WMP investors in a meeting on Thursday, the developer's statement said, to discuss payment solutions.

Two investors told Reuters that Kaisa said during the meeting it has a total outstanding 12.79 billion yuan ($2.00 billion) in principal and interest, and it plans to pay it back gradually. But investors have pushed back strongly, they added.

Kaisa did not immediately respond to Reuters questions about its repayment plan.

(With inputs from agencies) 
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Kaisa Group Holdings Ltd, a Chinese property developer said on Thursday that its finance unit had missed a payment on a wealth management product (WMP). This has added to worries about cash crunch at the debt-strapped company.

Kaisa Group Holdings Ltd, a Chinese property developer said on Thursday that its finance unit had missed a payment on a wealth management product (WMP). This has added to worries about cash crunch at the debt-strapped company. This has come amid concerns over health of China's real estate market in light of Evergrande crisis. Kaisa, the Shenzhen-based developer, which provides a guarantee for the wealth management product, said in a statement it is facing unprecedented liquidity pressure due to a challenging property market and rating downgrades. It said it was raising funds to ease the pressure by measures including speeding up asset sales. It is ranked as the 25th largest developer in the country by home sales. Kaisa has the most offshore debt coming due over the next year of any Chinese developer after embattled China Evergrande Group, which is reeling under more than $300 billion in liabilities. The worsening health of China's $5 trillion property sector, a major economic growth driver, is testing Beijing's resolve to press on with painful structural reforms such as reducing high debt levels in the sector. Shenzhen regulators will hold a meeting on Friday to discuss liquidity issues at Kaisa and its peer Fantasia, local media Cailianshe reported. Fantasia had defaulted on an offshore bond tranche last month. Fantasia and Kaisa declined to comment. The Shenzhen central sub-branch of People's Bank of China (PBOC) could not be reached for comment. Kaisa senior management including group chairman Kwok Ying Ching spoke to WMP investors in a meeting on Thursday, the developer's statement said, to discuss payment solutions. Two investors told Reuters that Kaisa said during the meeting it has a total outstanding 12.79 billion yuan ($2.00 billion) in principal and interest, and it plans to pay it back gradually. But investors have pushed back strongly, they added. Kaisa did not immediately respond to Reuters questions about its repayment plan. (With inputs from agencies)

Chinese property developer Kaisa misses payment, worrying investors

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