China developer KWG's shares, bonds plunge after loan non-repayments

KWG group

02/05/2023 05:25

** Shares in Chinese property developer KWG Group  1813.HK 
plunge 23% to the lowest since Nov 3
    ** The shares are the No.3 losers trading in the bourse by
noon
    ** Its 2023 dollar bond trades at 59.8 cents on the dollar,
according to Duration Finance, from 62.1 on Fri; 2027 bond drops
to 16.371 from 16.8
    ** KWG's auditor report on Fri noted the company had not
repaid a total of 212 mln yuan ($30.7 mln) of interest-bearing
bank and other borrowings on schedule in April, thus triggering
31.2 bln yuan of long term borrowings repayable on demand
    ** The conditions "indicate the existence of material
uncertainties which cast significant doubt over the group's
ability to continue as a going concern", the auditor report said

($1 = 6.9110 Chinese yuan renminbi)

 ((Clare.jim@tr.com))