Kaisa Group Holdings Ltd.’s Metropolis Plaza improvement beneath building in Shanghai, China, on Tuesday, Nov. 16, 2021.

Qilai Shen | Bloomberg | Getty Photos

BEIJING — Chinese language actual property developer Kaisa introduced Thursday plans for paying again traders, quickly assuaging considerations a few default as China’s property sector continues to face stress.

Kaisa’s Hong Kong-listed shares popped 20% out there open, earlier than paring some features to shut 13.86% increased. It was the primary day of buying and selling after a virtually three-week halt. The developer had suspended buying and selling after missing a payment on a wealth management product earlier this month.

“Compensation measures have been applied” for about 1.1 billion yuan ($171.9 million) of the wealth administration merchandise, Kaisa mentioned in a submitting with the Hong Kong inventory alternate. The developer mentioned it is in negotiations about compensation of the remaining 396.6 million yuan in wealth administration merchandise.

Individually, Kaisa mentioned it might restructure offshore debt funds due in December by providing traders new bonds value $380 million that are actually due in 2023. The unique U.S. dollar-denominated bonds have been value $400 million.

Amongst Chinese language builders, Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds, in accordance with French funding financial institution Natixis. Evergrande, the world’s most indebted actual property developer, ranks first.

As of the primary half of this 12 months, Kaisa had crossed two of China’s three “pink strains” for actual property builders that the federal government outlined, in accordance with Natixis.

“Persistent tightening governmental coverage, a number of credit score occasions and deteriorating client sentiment have resulted in short-term shut-down of assorted refinancing venues for the sector and put monumental stress on our short-term liquidity,” Kaisa mentioned in a submitting Thursday.

“Regardless of our efforts to cut back our interest-bearing debt in response to authorities rules, the present sharp downturn within the financing atmosphere has restricted our funding sources to deal with the upcoming maturities,” the corporate mentioned.

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