By Clarence Leong
Shares of Kaisa Group Holdings Ltd.’s units experienced volatility in Hong Kong after their trading resumed for the first time since Nov. 5, as investors remained concerned about the indebted property developer’s liquidity and ability to repay debt.
By midday Tuesday, Kaisa Capital Investment Holdings Ltd. and property-management arm Kaisa Prosperity Holdings Ltd. each dived more than 13% to HK$0.40 and HK$13.06, respectively, while Kaisa Health Group Holdings Ltd. surged 29% to HK$0.13.
In separate filings to the Hong Kong stock exchange late Monday, the units said they haven’t received any financial assistance from their parent and “any liquidity issues faced by Kaisa Holdings would not have any material adverse impact” on their operations, which are currently normal.
Kaisa Prosperity said it has continued to receive payments for services provided to Kaisa Group’s subsidiaries and associates, adding that it “has not experienced any material delay in receiving such payments.”
Revenue from the provision of those services accounted for less than half of Kaisa Prosperity’s total revenue for the six months ended June, the property-management company said.
Trading of Kaisa Group’s shares has been halted since Nov. 5, pending the release of insider information.
Shares of Kaisa Group, one of the Chinese property sector’s biggest borrowers in international bond markets, fell to an all-time low earlier this month after the company missed a payment on a wealth-management product and said it was facing “unprecedented pressure on its liquidity.”
Kaisa recently said it would speed up asset disposals to meet investor obligations.
Write to Clarence Leong at [email protected]
