Business

ICYMI: Chinese developer Kaisa also misses deposit


Trading in Kaisa’s shares was suspended earlier today, with sources saying the company is unlikely to meet its $ 400 million offshore debt deadline on Tuesday.

Similar to Evergrande’s case earlier this week, this would trigger a cross-default on the company’s offshore bond holdings – totaling nearly $ 12 billion.

So far, the fallout has been largely contained thanks to the help of local authorities. Policymakers have expressed strong views that any unfavorable outcome can be easily contained. And this has helped to calm even the domestic markets somewhat.

The strengthening of central and municipal governments has also undoubtedly been a reassuring factor for investors.

However, just as Evergrande’s case shakes before, it doesn’t matter until it does.

For now, the risks of contagion are managed. But keep in mind that this is a negative point that could weigh on sentiment.


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