(Bloomberg) -- Shares of troubled Chinese property developer Kaisa Group Holdings Ltd.’s listed property management arm tumbled after resuming trading in Hong Kong.
Kaisa Prosperity Holdings Ltd. fell as much as 17%, Kaisa Health Group Holdings Ltd. jumped as much as 39% and Kaisa Capital Investment Holdings Ltd. tumbled 13%. Trading in the units was halted earlier this month. The builder’s stock remains suspended and at least some of its creditors have yet to receive bond interest due last week.
Meanwhile, signs of stability are emerging in China’s junk dollar bonds as bets on policy easing assuage concern over a wave of defaults by property firms. The notes are yielding less than 20%, down from a high of almost 25%, with a Bloomberg index tracking China’s junk dollar market erasing its November losses.
Key Developments:
- Kaisa Prosperity Falls 17% After Trading Resumption
- Property Crackdown Is Dragging China’s Economy to 1990 Lows
- Panic Is Fading Fast in Chinese Junk Dollar Bond Market
- Kaisa Units to Resume Trading; Parent Remains Halted
- China Junk Bonds Add to Biggest Weekly Rally Since March 2020
- Stressed China Developers Sell Stock, Cut Dividends for Cash
Kaisa Prosperity Falls 17% After Trading Resumption (10 a.m. HK)
Kaisa Prosperity falls as much as 17%, Kaisa Health jumps as much as 39% and Kaisa Capital Investment tumbled 13%, after resuming trading in Hong Kong Tuesday.
Panic Fading Fast in Junk Bond Market (8:48 a.m. HK)
Signs of stability are emerging in China’s junk dollar bonds as bets on policy easing assuage concern over a wave of defaults by property firms. The notes are yielding less than 20%, down from a high of almost 25%, with a Bloomberg index tracking China’s junk dollar market erasing its November losses.
China State-Run Developers Rush to Sell Yuan Debt (8:15 a.m. HK)
Chinese state-owned developers are about to test investor demand for yuan bonds with a flood of issuance.
China Merchants Shekou Industrial Zone Holdings Co., Poly Developments & Holdings Group Co. and Bright Real Estate Group Co. received approval to sell a combined 8.6 billion yuan ($1.3 billion) of local bonds on the interbank market this week. If successful, that would make November the strongest for issuance in eight months.
Positive demand for the bonds could prompt other property firms to follow suit, potentially easing a historic liquidity crunch in pockets of the real estate sector.
Kaisa Units to Resume Trading; Parent Remains Halted (7:55 a.m. HK)
Three units of Chinese property developer Kaisa Group Holdings Ltd. - Kaisa Prosperity, Kaisa Health and Kaisa Capital Investment -- will resume trading at 9 a.m. Hong Kong time Tuesday, according to separate filings to the Hong Kong stock exchange late Monday.
The companies said they haven’t received financial assistance from Kaisa Group and any liquidity issues faced by the parent wouldn’t have a material adverse impact on their operations.
A look at Evergrande’s maturity schedule:
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