New | Shares of troubled developer Kaisa suspended from trading

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.
