Kaisa to sell assets after missing payment and Fantasia's project firm is said to not have repaid principal and interests as of today
This isn't quite getting a wider airing and probably not enough attention as it should. As much as Evergrande is the big name that everyone is watching out for, it isn't the only one to watch when it comes to China's property market at the moment.
I've made mention of this over the past week (latest post here) and I still foresee that there might be risks to broader market sentiment once investors open their eyes a little more.
Kaisa and Fantasia are the two names in the headlines once again today with the former seeing shares of its holding group and three other units suspended, a day after missing a payment to onshore investors.
A fresh report is now stating that Kaisa will be looking to sell 18 property projects to raise capital for liabilities, after being pressured by the Shenzhen government.
Meanwhile, Baida Group is out with a statement saying that Fantasia's project firm in Hangzhou has not repaid principal and interests as of 5 November.
All of this underscores the debt troubles faced by the two names above, and is a by-product of the meltdown of China's property sector at the moment.
Not a lot is being said but China's property market index is down more than 10% on the week and that says a lot about sentiment regarding the situation. The worrying part is that things are likely to only worsen and that risks spillovers to other sectors.
While this isn't having a broader impact on markets outside of the region just yet, it is worth paying attention to in case it suddenly matters again - just like it did with Evergrande.