(CNBC) Shares of Hong Kong-listed property developer Kaisa rose up to 20% in pre-market on Thursday, after the company said it was in talks to repay investors amid looming default.
Kaisa said that it had implemented measures to repay about 1.1 billion yuan or $171.9 million of its wealth management products. The developer was also in negotiations for repayment of the remaining $396.6 million yuan.
The real estate developer also said it will restructure offshore debts ahead of the December due date by issuing bonds of up to $380 million.
Kaisa says the tightening of government policy, falling consumer sentiment, and multiple credit events have posed a challenge to the company’s refinancing avenues.
The share jump happened on the first day since trading was halted three weeks ago following payment defaults that sent the stock tumbling.
Kaisa is the second-biggest issuer of US dollar denominated offshore bonds, with the other indebted Chinese developer Evergrande, the first.
1638: HKG is up +13.86%.
