China developer faces HK$400m loan default

Hong Kong

CHINA'S Kaisa Group Holdings warned it may default on more debt after it failed to repay a HK$400 million (S$69 million) loan, the latest developer to flag financial difficulties amid a downturn in the real estate sector.

Shenzhen-based Kaisa, which has a market capitalisation of HK$8.2 billion, is one of the smaller listed property firms in China, where a credit crunch and excess supply are putting pressure on a sector once key to economic growth. Last year, Agile Property Holdings Ltd suffered debt financing problems and some of its executives were detained.