One banker said CITIC Bank may have triggered the panic and run on Kaisa's assets, or it simply reflects the gravity of the situation as banks rush to prevent their loans from going bad. A lawyer is also quoted as saying Kaisa will have limited access to funds now and sales will be affected.
Sina: 15家金主申请查封佳兆业资产 多地项目受波及
English coverage:
Reuters: Court freezes some of China developer Kaisa Group's assets
A Shanghai court has frozen $105 million in assets of Kaisa Group Holdings, a trust unit of China's Shanghai AJ Corp said on Monday, as filings against the troubled property developer pile up.
Shenzhen-based Kaisa warned this month it may default on more debt after it failed to repay a HK$400 million ($51.3 million) loan, the latest developer to flag financial difficulties amid a downturn in the real estate sector.
At least 28 court filings were made against Kaisa and its subsidiaries between Jan. 6 and Jan. 9 in Shenzhen, where Kaisa has most of its assets, according to the latest records in the city's Intermediate People's Court, involving 17 financial institutions.
WSJ: Kaisa Group Asset Freeze Sought by Chinese Financial Organizations
More broadly, the cost of issuing dollar bonds for below-investment-grade Asian companies has surged to 7.8%—the highest level in 16 months—from as low as 6.9% in August, while the cost for Chinese firms, investment grade or below, has jumped to 5.5%, the highest level since May last year, from 5.3% in early December, according to J.P. Morgan Asia Credit Indexes.
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