Struggling property developer Kaisa Group Holdings and three of its units had their shares suspended from trading on Friday, just a day after an affiliate missed a due payment on a wealth management product (WMP) to onshore investors, reports Reuters. Shenzhen-based homebuilder Kaisa, which has guaranteed the WMP, said in a statement on Thursday it was facing unprecedented liquidity pressure due to a challenging property market and rating downgrades.
Kaisa and its unit Kaisa Prosperity said in separate exchange filings on Friday that trading in their shares was being suspended pending the release of “inside information.” The companies did not elaborate.
Kaisa’s troubles come amid concerns about a broadening liquidity crisis in the Chinese property sector, with a string of offshore debt defaults, credit rating downgrades and sell-offs in the developers’ shares and bonds in recent weeks.