Kaisa Shares Plunge to Record, Bonds Slump on Renewed Concern

(Bloomberg) -- Investor concern over Kaisa Group Holdings Ltd. flared again on Thursday, with its shares and offshore notes slumping. 

The firm’s shares dropped as much as 12.6% to a record low, while its dollar bonds declined as much 5 cents on the dollar, according to credit traders. 

Kaisa became a focus of investor concern after it canceled meetings with investors in October, triggering concerns about its liquidity situation and sending its dollar bonds lower. Downgrades by both S&P Global Ratings and Fitch Ratings a few days later caused a fresh sell-off in the developer’s shares, which have tumbled more than 70% this year. Its dollar bonds are among the worst performers in a Bloomberg index.  

The company is China’s third-largest dollar debt borrower among developers, with more than $11 billion of dollar bonds outstanding. 

China’s First Defaulting Developer Is Alarming Bondholders Again

It has a $400 million note due on Dec. 7, and $2.8 billion of dollar bonds maturing in 2022, according to Bloomberg-compiled data. 

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