Kaisa Prosperity Stocks Slip as it Resumes Trading

On Tuesday, Kaisa Prosperity, a unit of Chinese embattled developer Kaisa, sank as it resumed trading in the Hong Kong stock exchange. 

Accordingly, the property services arm tumbled 12.85% or 0.25 points to $1.68 per share after its halted trading on November 5.  

At the same time, Kaisa Capital, the investment segment, slumped 13.04% or 0.01 points to $0.05 per share.

Conversely, its health group, which focuses on dental prosthetics and healthcare, skyrocketed 26.80% or 0.003 points to $0.02 per share. 

Meanwhile, the trader’s stock remained suspended as it needed to comply with last week’s bond interest rate. 

Subsequently, the three units explained in a separate filing that their business operations are normal. 

In addition, they mentioned that they had not received any financial assistance from their parent company.  

Consequently, hints of stability emerge in Chinese junk dollar bonds as bets on policy relieve concern over a ripple of defaults by property companies. 

Also, the notes yielded less than 20.00%, lower than the recent high of 25.00%. 

In 2015, Kaisa Group became the first Chinese real estate company to default on an overseas bond.

Then, it rebounded and became China’s No. 25 developer by sales, managing projects in 51 cities across the country.  

As of the first half of this year, it surpassed two of China’s three “red lines” for real estate developers. 

In line with this, Kaisa posted a massive amount of debt of $400.00 million due in December and around $3.00 billion in 2022.

At present, Kaisa Group garnered the most offshore debt with $10.90 billion after the cash-strapped China Evergrande Group. 

Last week, it separately sought help from creditors and explained it would not pay interim dividends.

Asia-Pacific Mixed as Kaisa Prosperity Fell

Meanwhile, shares in the Asia-Pacific region struggled for direction as the Kaisa Prosperity unit dipped. 

In Hong Kong, the Hang Seng index advanced 1.35% or 341.87 points to $25,732.78 per share. 

In mainland China, the Shanghai Composite index rose 0.30% or 10.45 points to $3,543.75 per share. 

At the same time, the benchmark Shenzhen Component climbed 0.57% or 82.97 points to $14,719.36 per share. 

In Japan, the Nikkei 225 index gained 0.03% or 9.65 points to $29,786.45 per share.

Correspondingly, the broader TOPIX index jumped 0.15% or 3.02 points to $2,051.54 per share. 

Elsewhere, Australia’s S&P/ASX 200 index shed 0.67% or 49.70 points to $7,420.40 per share. 

Then, the MSCI’s broadest index of Asia-Pacific shares outside Japan increased 0.29% to $652.70. 

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