By Gina Lee
Investing.com – Shares in Kaisa Prosperity Holdings Ltd. (HK:2168), the listed property management arm of troubled Chinese property developer Kaisa Group Holdings Ltd. (HK:1638), tumbled as they resumed trading on the Hong Kong Stock Exchange on Tuesday.
Kaisa Prosperity shares tumbled 13.51% to HK$13.06 ($X) by 11:31 PM ET (4:31 AM GMT), after falling as much as 17%.
Two other Kaisa Group units, Kaisa Health Group Holdings Ltd. and Kaisa Capital Investment Holdings Ltd. (HK:0936), also resumed trading on Tuesday. Kaisa Health shares jumped 28.87% to HK$0.125 and Kaisa Capital shares tumbled 13.04% to HK$0.4.
Trading in all three units were halted earlier in November 2021, and Kaisa Group shares remain suspended. The developer continues to struggle with debt woes, with some creditors yet to receive bond interest due last week.
Fellow property developer China Evergrande Group (HK:3333) last week narrowly averted default with a last-minute payment
However, Chinese junk dollar bonds are stabilizing as bets on the government easing its policy alleviate fears that property firms will default.
The notes are yielding less than 20%, down from a high of almost 25%, while China’s junk dollar market erased its November losses according to a Bloomberg index tracking the market.
On the yuan bond side, Chinese state-owned developers are gearing up to test demand through a flood of issuance. China Merchants Shekou Industrial Zone Holdings Co., Poly Developments & Holdings Group Co. and Bright Real Estate Group Co. have been cleared to sell a combined CNY8.6 billion ($1.35 billion) of local bonds on the interbank market throughout the week.