Kaisa Flags China Graft Probe Risks to Global Investors
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As President Xi Jinping fights graft, investors in bonds of Chinese property companies are concerned losses are just beginning.
Builder Kaisa Group Holdings Ltd., based in the southern city of Shenzhen, fell into distress amid an anti-corruption probe, and is seeking to cram through a restructuring on 17 billion yuan ($2.7 billion) of offshore debt that would impose losses on bondholders. A second developer, Shenzhen Kingkey Group, is now also being investigated, people familiar with the matter said Monday.