Kaisa's Hong Kong-listed shares popped 20% in the market open, before paring some gains to close 13.86% higher. It was the first day of trading after a nearly three-week halt. The developer had suspended trading after missing a payment on a wealth management product. The company released plans for making payments on wealth management products and U.S.-listed offshore debt.

Kaisa suspended trading after missing a payment on a wealth management product earlier this month. The developer said it's in negotiations about repayment of the remaining 396.6 million yuan in wealth management products. Kaisa said it would restructure offshore debt payments due in December by offering investors new bonds worth $380 million.

Among Chinese developers, Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds, according to Natixis. Kaisa's original U.s. dollars-denomination bonds were worth $400 million. The company is based in Beijing.

As of the first half of this year, Kaisa had crossed two of China's three "red lines" for real estate developers. "Persistent tightening governmental policy, multiple credit events and deteriorating consumer sentiment have resulted in temporary shut-down of various refinancing venues," Kaisa says.
Tap to copy the Short Url to this post: 
All Business News on a Single Page. Join for Free →