Kaisa’s Delay of 2014 Earnings Raises Concerns — Market Talk

September 21, 2015
By Bloomberg

0551 GMT [Dow Jones] In a weekend stock exchange filing, Chinese property developer Kaisa Group Holdings (1638.HK) gave more details regarding the issues behind the delay of the announcement of its 2014 earnings, which included the “nature and substance of cash transactions to, and from, certain parties” and the commercial rationale behind the sale of certain subsidiaries in Dongguan.” This raises corporate governance concerns, says Trung Nguyen, an analyst at Lucror Analytics. The Shenzhen-based developer, which defaulted on its offshore bonds in April, said earlier auditors are still trying to ascertain the authenticity of certain documents concerning liabilities and the status of sale restrictions imposed by the firm’s creditors.