SHANGHAI, Nov 5 (SMM) – Kaisa, a Chinese real estate company, encountered a liquidity crisis, which dragged down the Chinese real estate stocks in HKEX this morning.
China Aoyuan fell more than 12%, and Seazen dropped more than 5%. Sunac, Agile, and Powerlong fell more than 4%. Shimao Group and LVGEM China all went down.
On November 3, the market heard that Kaisa encountered liquidity crisis. It failed to repay the funds due on the day, and the repayment for other funds may also be overdue. The company is communicating with Kaisa Holdings to look for a solution.
Kaisa and Fantasia, another company with liquidity crisis, were required by the Shenzhen Municipal Bureau of Housing and Urban-rural Development to attend a meeting on November 5 to discuss the liquidity issues.
Kaisa Group and its subsidiaries have suspended the stock trading in Hong Kong today.