Chinese developer Kaisa Group stopped trading on Friday

Shares of Chinese developer Kaisa Group, listed on the Hong Kong Stock Exchange, stopped trading on Friday. The reason is the escalation of the group's problems with debt financing. According to media reports, Kaisa sells assets to pay off debts of more than USD 10 billion (EUR 8.64 billion). This is another signal of the worsening debt crisis in the Chinese real estate sector. The debt problems of one of the largest developers in China Evergrande have exacerbated the problems in the Chinese real estate sector, which affect more and more companies and increase fears that they will spill over into the entire economy. In a brief report to the stock exchange on Friday, Kaisa announced the cessation of trading in its shares. Other divisions of the Kaisa Capital Group, Kaisa Health, and Kaisa Prosper have also announced the cessation of trading in their shares. The group said on Thursday that its finance division had not made a payment on a single investment product. This confirmed concerns that the group has liquidity problems. Shares of Kaisa fell nearly 13 percent this week until trading stopped and have fallen by about 70 percent since the beginning of the year. Kaisa has auctioned 18 real estate projects with a total area of ​​1.45 million square meters and an estimated total value of $ 12.8 billion. The group is also looking for a buyer for its asset management division, Kaisa Prosperity Holdings, which has a market value of around $ 310.91 million. Fitch and S&P downgraded Kaisa's credit rating. They cited the risks threatening the refinancing of the group's debt as a reason. Kaisa is not one of China's largest development groups, with 27th developer in terms of revenue, but is one of the industry's largest dollar borrowers, with more than $ 11 billion worth of outstanding bonds.