SHANGHAI (BLOOMBERG) - Kaisa Group Holdings, the first and only Chinese property developer to default on its overseas debt, surged by a record 85 per cent in Hong Kong on Monday (March 27) after trading resumed from a two-year suspension.
Kaisa released its long-overdue results on Sunday, the final condition it needed to meet to apply to lift its trading suspension. The shares surged almost 80 per cent to HK$2.80 at 9:38am in Hong Kong. Kaisa shares fell 53 per cent in the months leading up to its suspension in March 2015.
The Shenzhen-based builder on Sunday reported a loss of 612 million yuan (S$124.3 million) last year, following a 1.1 billion yuan loss the previous year, when it became the first Chinese developer to default on dollar-denominated debt after failing to pay the coupon on two securities in March 2015.
After a two-year debt reorganization, Kaisa reported outstanding borrowings of about 87.5 billion yuan, out of which 7.8 billion yuan needs to be repaid within a year, the developer said.