Home Markets China property dives as Kaisa pleads for help, Fed warns of contagion

China property dives as Kaisa pleads for help, Fed warns of contagion

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  • Kaisa requests help to pay investors, workers, suppliers – source
  • Developer met Chinese govt think-tank in Shenzhen – source
  • U.S. Federal Reserve warns strains could cause global damage
  • News comes amid deepening worries over China’s property sector
  • Investment grade Chinese firms start being dragged in

SHANGHAI/BEIJING/LONDON, Nov 9 (Reuters) – China’s property sector suffered a fresh pounding on Tuesday as Kaisa Group (1638.HK) made a desperate plea for help and the U.S. Federal Reserve sent its first direct warning that the crisis could cause global damage.

Builders’ bonds were sold off again after sources in China said Kaisa, which was the first of its developers to default back in 2015, had told a meeting with a government think-tank and some of the country’s banks and property firms that it needed help to pay its loans, workers and suppliers.

Other big firms’ bonds were tumbling too, with those of R&F Properties (2777.HK) and China Vanke (000002.SZ) -…

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