Chinese developer Kaisa soars 26pc as Hong Kong tycoon Lau’s family investment boosts confidence

Shares of Chinese property developer Kaisa Group soared 26 per cent on Thursday morning after it was revealed that tycoon Joseph Lau’s family has invested nearly US$1.2 billion in the company’s offshore debts.

Lau’s family, led by his wife Kimbie Chan Hoi-wan, along with their company, Chinese Estates, and several investment partners, have bought US$1.2 billion of Kaisa’s bonds, with the family itself accounting for over 90 per cent of the total, a Chinese Estates spokesman said in a statement on Wednesday night.

They bought US$600 million in bonds earlier this year, and the other half in the latest round of fundraising.

Shenzhen-based Kaisa said it raised US$805 million in three new bonds sales on Wednesday, mainly for refinancing purposes. That includes a US$95 million, 7.25 per cent bond due in 2020, a US$100 million, 8.5 per cent bond due in 2022 and a US$610 million, 9.375 per cent bond due in 2024.

The investment from Lau’s family is seen as a display of confidence in Kaisa – a company that was on the verge of bankruptcy in 2015 and the first Chinese property developer to default on an overseas bond.

Kaisa’s shares surged to an all-time high of HK$6.6 on Thursday morning after Chinese Estates made their announcement.