Trading in shares of China’s real estate developer Kaisa was suspended for the second time in two months on Wednesday as problems surfaced in China’s real estate sector this week.

The developer has been plagued by debt problems as it recently struggled to make the repayment. It appears to have missed Tuesday’s deadline on its $ 400 million offshore debt, according to Reuters.

Kaisa stopped trading for nearly three weeks in early November after learning that she had lost payment for an asset management product.

The last trading stop was not immediately justified. Kaisa announced in late November that it would restructure its December offshore debt payments, with new bonds worth $ 380 million due by 2023. The original $ 70 million bonds were worth $ 400 million in SAM.

But last week the developer failed to secure an exchange offer with the bondholders. Bondholders can, among other things, purchase new bonds issued by Kaisa, which can be exchanged for shares in some of the developer’s listed entities. According to analysts, Kaisa’s default risks have increased.

Among China’s developers, Kaisa is the second-largest issuer of US dollar-denominated offshore high-yield bonds, according to French investment bank Natixis. Evergrande, the world’s most heavily indebted real estate developer, comes first.

Kaisa shares are down about 20% over the past month.

Evergrande, which has seen its debt crisis over the past few months, is back in the spotlight this week as it appears to be officially bankrupt for the first time. The developer has not yet said it paid $ 82.5 million in interest – the 30-day grace period ended Monday.

In this case, it was the first time that the company officially went bankrupt, as it made the last interest payments in the eleventh hour within the grace period.

Evergrande, the world’s largest debt developer, will be pushing a debt restructuring that would include all of its offshore government bonds and personal debt.

China’s decision to focus on easing has strengthened feelings of support. On Monday, the country’s central bank announced it would cut the reserve requirement ratio, or the number of money banks must hold in reserve, for the second time this year. This will free up 1.2 trillion yuan ($ 282 billion) to slow growth during the pandemic.

The real estate sector in China has been hit by government measures to raise land debt. Evergrande’s problems ended after authorities introduced the “three red lines” policy last year. This policy limits a company’s debt about a company’s cash flows, assets, and capital levels. This was starting to hold back developers after years of growth that had led to excessive debt.

Other Chinese real estate developers outside of Kaisa have begun to show signs of tension: some have failed to pay the interest while others have made their debts completely insolvent.

“The history of real estate in China remains intact,” said Teresa Kong, fixed income manager, and portfolio manager at Matthews Asia.

“So there are still many families to be started, especially in urban areas, as workers continue to move from the countryside to the cities.” “I think by and large the government understands that you will have mistakes, but the industry as a whole is a very important part of the economy.”

Kong also stressed that local provincial governments, heavily reliant on selling land to developers, must consider other sources of income.

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