Pursuits
Kaisa Debt Mystery Flags Query on Home Buyers Turned Lenders
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An unexplained doubling of debt at Kaisa Group Holdings Ltd. is fueling speculation that home buyers may have unwittingly turned into lenders to the troubled Chinese developer.
Kaisa said in an exchange filing yesterday that its interest-bearing debts jumped to 65 billion yuan ($10.4 billion) as of Dec. 31, more than double total borrowings of 29.8 billion yuan at the end of June. It didn’t provide further details, raising questions concerning the categorization of deposits the builder received for homes it hasn’t yet sold due to government blocks.