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Langi Chiang

Embattled mainland developer Kaisa Group said on Monday its shares had been suspended from trading pending the release of an announcement containing inside information.
The announcement followed the resignation of two senior executives on Sunday.
Global ratings agency Standard & Poor’s placed the firm, with a BB- long-term corporate credit rating, on credit watch with negative implication on Wednesday, saying sales restrictions – as yet unexplained - imposed by Shenzhen’s city government on four of Kaisa’s projects could undermine its sales prospects and financing capabilities next year.
“In addition, the suspension of relevant approvals by the local government will delay Kaisa’s project construction and development in Shenzhen, including its current land bank development and new land acquisitions related to urban redevelopment projects,” S&P said in a note.
Kaisa’s shares have tumbled 47 per cent this month to end at HK$1.59 apiece on Wednesday before the market closed for the Christmas holiday.
On Sunday, the developer announced that vice-chairman and executive director Tam Lai-ling had tendered his resignation with effect from Monday to pursue personal career development. Chief financial officer Cheung Hung-kwong also quit.
The announcement was signed by Kwok Ying-shing, who is resigning as chairman and an executive director at the end of this month.
Executives from Sino Life will be in charge. The Shenzhen-based insurer bought 11.21 per cent of Kaisa shares from the Kwok family trust to increase its stake to 29.96 per cent earlier this month at the price of HK$2.898 a share for an aggregate amount of HK$1.7 billion.
S&P cited Kaisa as saying that projects in Shenzhen would contribute more than 20 per cent of its total property sales in 2014 and 2015.
The government ban would materially weaken the rating agency’s base-case expectation of 32 billion to 33 billion yuan of contracted sales and cash inflows for Kaisa next year, it added.


Shares of troubled developer Kaisa suspended from trading

Kaisa vice-chairman Tam Lai-ling has resigned "to pursue personal career development". Photo: Jonathan Wong

Kaisa shares plunge more than 18 per cent as trading resumes

Shenzhen's city government has stopped processing sales at four Kaisa projects. Photo: Bloomberg

Developer Kaisa plans to restore public float

Shenzhen authorities restricted sales at some Kaisa projects this month. Photo: Bloomberg

Kaisa chairman resigns ‘for health reasons’

Kaisa chairman Kwok Ying-shing's resignation followed the blocking of some project sales in Shenzhen. Photo: May Tse 

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New | Shares of troubled developer Kaisa suspended from trading