Shares of Chinese real estate developer Kaisa pop 20% after debt restructuring plan

The City Plaza development is under construction in China.

Kaisa, a Chinese real estate developer, said Thursday that it would pay back investors who have 888-492-0 888-492-0s.

Kaisa's Hong Kong-listed shares popped 20% in the market open, before paring some gains. It was the first day of trading since the halt. The developer had stopped trading after missing a payment.

Kaisa said in a filing with the Hong Kong stock exchange that payment measures have been implemented for 1.1 billion yuan of wealth management products. The developer said it is in talks about repayment of wealth management products.

Kaisa said it would offer investors new bonds worth $380 million that are due in 2023 in order to restructure offshore debt payments due in December. The bonds were worth $400 million.

Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds among Chinese developers.

According to Natixis, Kaisa had crossed two of China's three "red lines" for real estate developers.

Kaisa said in a filing Thursday that the sector has been put under enormous pressure by the continual tightening of governmental policy, multiple credit events and worsening consumer sentiment.

The company said that the current downturn in the financing environment has limited their funding sources to address upcoming maturities.


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