Chinese builder CIFI Holdings Group Co. suspended trading of its shares in Hong Kong on Thursday, pending an announcement it said “constitutes inside information,” reports Bloomberg.
The firm, which earlier this month missed a payment on a convertible bond, didn’t provide further information in the disclosure with the city’s stock exchange. Its shares have plunged 35% this month and 88% for all of 2022.
CIFI’s default sparked fresh investor worries about China’s beleaguered real estate sector given the firm was among those chosen to sell onshore bonds with state guarantees. That effort is intended to help select developers access domestic funding amid an ongoing liquidity crunch fueled by government efforts to curb property-related leverage.