China’s Kaisa needs external help for debt payment, NDRC meets with property developers
|China’s National Development and Reform Commission (NDRC), the country’s state planner, held meetings with banks and property developers in Shenzen on Monday, Reuters reports, citing an unnamed source.
China Vanke, Kaisa Group, Ping An Bank, China Citic Bank, China Construction Bank and CR Trust met with the NDRC on Monday.
In other news, Reuters reported that the Chinese property developer Kaisa said it needed external help to pay investors, workers and suppliers.
Meanwhile, Bloomberg is reporting that Goldman Sachs Asset Management “has been adding a “modest amount of risk” through high-yield bonds issued by China property developers and denominated in US dollars.”
Market reaction
It’s worth noting that China's investment-grade dollar notes weakened further on Monday as investors eyed possible contagion from the property industry.
The futures tied to the S&P 500 index drop 0.21% on the day while AUD/USD is down 0.18% on a daily basis, currently trading at 0.7407.
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