Analysts see Kaisa's bond default as isolated event

Beijing

CHINA'S troubled property sector has seen its first default outside the mainland, with developer Kaisa unable to pay interest on its Hong Kong-listed bonds, but analysts said that an immediate crisis is unlikely despite market woes.

Kaisa Group Holdings Ltd, based in the boom town of Shenzhen that borders Hong Kong, failed to pay interest totalling US$52 million on 2017 and 2018 notes due last month. It confirmed the default on Monday when a 30-day grace period expired.

Analysts said that Kaisa's problems were unusual and unlikely to occur in other firms. "It is an isolated event," Kalai Pillay, head of Asia-Pacific industrial ratings at Fitch Ratings in Singapore, told AFP on Tuesday. "This company h…