Kaisa Group is being put under pressure to devise a plan to repay investors in its wealth management products (WMPs) according to sources. The sources note that if the company fails to do so, a possible consequence includes the Shenzhen government seizing some of Kaisa’s assets and slowly taking over the company. Kaisa missed payments on some WMPs in early November, telling investors it had a total of RMB 12.79bn ($2bn) in outstanding principal and interest. Kaisa is said to have put 18 property projects in Shenzhen worth RMB 81.8bn ($12.8bn) on an auction block.
Kaisa’s dollar bonds were slightly lower between 24-26 cents on the dollar.
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