Trading in shares of the embattled Chinese developer Kaisa Group Holdings have been suspended on the Hong Kong stock exchange, prompting fresh concerns about the financial stability of the country’s indebted property sector.
The suspension on Wednesday comes after Kaisa was reportedly to be struggling to make a loan repayment of $400m (£301m) by the deadline of Tuesday night in the US, Reuters said, citing a source with direct knowledge of the matter.
Panicked investors offloaded shares amid concern that some of the biggest names connected to China’s unravelling property boom might also be close to collapse.
Speculation that China Evergrande, the world’s most indebted property developer, will also be unable to access fresh loans to pay down debt sent shares in the company to a record low.
Evergrande has been selling assets in recent months to raise the money it owes to customers, investors and suppliers after borrowing £300bn to finance many of the 1,300 developments it has in more than 280 cities across China.