China property shares sink as new firm struggles

Evergrande may not be the only big Chinese property developer in trouble.

Shares in rival Kaisa Group and three of its units were suspended on Friday (November 5).

The move came a day after an affiliate missed making a payment to investors.

Kaisa and its unit Kaisa Prosperity said in separate filings that the shares were suspended pending the release of "inside information".

They didn't elaborate on what that might mean.

Shares in mainland China property stocks fell close to 3% following the news, and are down almost 18% over the past two weeks.

The jitters were first sparked by Evergrande, once China's biggest property developer.

It's already missed payments to bondholders, and has another due within days.

Reuters reported last month that Kaisa was seeking buyers for some assets as it scrambles to make debt repayments.

The firm has a $400 million payment coming due in early December.

Its troubles add to signs of a liquidity crisis rippling right across China's $5 trillion property sector.

Reuters sources say Yango Group, another developer, is also renegotiating its debts.

Now it remains unclear what, if anything, Beijing may do to intervene.

Investors fear a wave of contagion to rival firms if any big name succumbs to a messy collapse.

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