Shares in China's Kaisa surge on debt deal bid

Shares in ailing Chinese property developer Kaisa Group surged on Thursday (November 25).

They were up as much as 18% in afternoon trade.

That after the firm said it planned to extend the maturity on one key bond, subject to agreement by holders.

The move would help it avert a messy default.

The developer is closely watched as it has more offshore debt than any such firm except bigger and equally troubled Evergrande.

Kaisa has already missed bond coupon payments totalling more than $88 million, though it does still have a grace period.

Chinese developers are facing an unprecedented liquidity squeeze due to regulatory curbs on borrowing.

That's caused a string of offshore debt defaults and ratings downgrades.

Kaisa, Evergrande and others have been scrambling to raise funds as a result.

Investors around the world fear any major default could ripple through China's whole $5 trillion property sector.

The U.S. Federal Reserve has warned that that scenario could pose real risks to the global financial system.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting