After Evergrande another Chinese real-estate firm Kaisa Group at brink of defaulting

Amid China's snowballing property debt crisis, Kaisa Group Holding Ltd appears to be at risk of facing default. The news comes a day after an affiliate missed a payment to onshore investors resulting from "unprecedented pressure" in China's challenging property market, CNN reported. Reports of the crisis followed its rival Evergrande Group, which is currently indebted with $300 billion.

On Thursday, Kaisa Group saw a record drop of 15% drop in its stock value. The company also faced liquidity issues following which it missed payments to its wealth management products, CNN reported quoting the Chinese state-run newspaper Securities Times. Trading of shares of the Shenzhen-based developers was suspended in Hong Kong on Friday citing "pending" payments. Meanwhile, Kaisa has refused to provide further details behind the halt from trading and the recent downgrade of its credit ratings by agencies which has made it more difficult to borrow money from the market, CNN added. However, Kaisa is said to have been "actively raising funds and doing its best to solve current problems," Security Times reported.

Speculations over Evergrande slipping into default continues

Meanwhile, investors have continued to fret over the crisis at one of China's largest and currently most indebted real estate developers, Evergrande. Fears of the company slipping into default on several bond interest payment deadlines have been looming while the company made new obligations, including one reported last week, CNN mentioned. As of October 26, the firm had restarted the construction of several projects as it announced in August. As per AP, they also noted a few buildings had recently finished construction amid claims of making efforts to shore up market confidence.

It is worth the mention that China-based property developers have been reeling under debt since the Xi Jinping-led Communist government tightened limits on corporate debt levels. The second-largest property developer in China, Evergrande hit a stumbling block last year after it struggled to meet interest payments on its debts. Things went bad to worse after the stock prices scuttled owing to a fall in international credit ratings.

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