Investors fear Chinese realty company Kaisa Group turning into another Evergrande

After China’s property giant Evergrande Group faced a debt repayment deadline, another real estate developer Kaisa Group is at risk of default, escalating fears of further problems in the country's embattled property sector. 

Shares of Kaisa Group, a Shenzhen-based developer, were suspended from trading on Friday in Hong Kong. The company's subsidiaries, which were also halted from trading, cited a “pending” announcement about the group in stock exchange filings, reported the CNN recently. 

While Kaisa did not disclose more details for the reason behind the suspension, it had said recently that it was facing “unprecedented pressure” on its finances. 

The Chinese State-run financial newspaper, the Securities Times, had reported recently that the company had told the outlet about its liquidity issues and admitted to missing a payment related to its wealth management products. 

According to the report, Kaisa had said that it was experiencing multiple headwinds, such as a challenging real estate market environment and the recent downgrading of its credit ratings by international agencies, the CNN had reported. 

The news comes as investors continue to fret over the crisis at Evergrande, China’s most-indebted developer. The conglomerate has generated international headlines since September after warning that it could default on its enormous debts of more than $300 billion. 

Another real estate developer, Modern Land, is also struggling to pay its debts now. In recent weeks, a slew of developers has disclosed their own cash-flow issues, asking lenders for more time to repay them or warning of potential defaults. 

Kaisa had faced a setback recently as Fitch and S&P Global Ratings had both downgraded the company, citing debt concerns.

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