While Kaisa did not disclose further details on the reason for the suspension, she had said the day before that she was facing “unprecedented pressure” on her finances.
Kaisa did not immediately respond to a request for additional comment.
According to the report, Kaisa said she was experiencing multiple headwinds, such as a challenging environment in the real estate market and the recent downgrading of her credit ratings by international agencies.
Those comments led to the company’s shares falling 15% on Thursday. Their stock has already been reduced by more than 70% this year.
Kaisa faced a setback last week when Fitch and S&P Global Ratings downgraded the company, citing concerns about debt.
In a report, S&P analysts wrote that they viewed “Kaisa’s capital structure as unsustainable given the company’s significant short-term debt maturities, weakened liquidity and inadequate free cash flow through 2022.”
They estimated that around $ 3.2 billion of the company’s offshore notes would mature during the year through October 2022, suggesting that it “will have to rely on the asset sale and successfully improve its capital structure to avoid defaults.”
According to the Securities Times, Kaisa said Thursday that she had been “actively fundraising … and doing everything possible to solve her current problems.”
But news of the company’s troubles shook the industry on Friday. The Mainland Hang Seng Property Index, which tracks mainland Chinese companies in the sector, fell 2.8% in Hong Kong, after weeks of pressure on those stocks.
But Evergrande faces another test on Saturday, when another overseas bond payment matures, said Jeffrey Halley, senior market analyst for Asia Pacific at Oanda.
– CNN’s Beijing office contributed to this report.