The country's developers are still reeling from the effects of Beijing's 2020 crackdown on excessive borrowing and rampant speculation in the property sector, with many facing restructuring following defaults.
Kaisa, which first defaulted on its offshore debt in 2021, was suspended from Hong Kong trading in April after failing to report financial results on time.
Releasing the long-delayed data on Thursday, the Shenzhen-based firm reported attributable losses of 7.7 billion yuan ($1.1 billion) in the first half of 2022 and 12.7 billion yuan for all of 2021.
Shares fell as much as 41 percent to a record low of HK$0.5 (about six US cents) on Friday morning, after the trading halt was lifted as a result of the data release.
Chairman Kwok Ying-shing said Kaisa would publish an update on restructuring negotiations "in due course", but did not give a firm timeline.
"These discussions have been constructive... but do require time to formulate or implement due to ongoing changes in market conditions," the company said.
Kaisa reported aggregate borrowings of more than 131 billion yuan ($18.8 billion) as of June 30, 2022.
In November, the Chinese government announced measures to promote "stable and healthy" development, including credit support for indebted developers and assistance for deferred-payment loans for homebuyers.
Property stocks plunged again this week, however, with mixed messages from Beijing policymakers and fading investor optimism, according to metrics compiled by Bloomberg Intelligence.
Evergrande, the country's former top developer whose fall from grace epitomised the industry-wide crash, has pledged to repay its debt this year.
Major developers -- including Evergrande -- have failed to complete housing projects, triggering protests and mortgage boycotts from homebuyers last year.
Evergrande, which has racked up some $300 billion in liabilities, has rushed to offload assets and has been involved in restructuring talks.
A lawsuit against Evergrande in Hong Kong has been adjourned to March 20, with pressure on the group to firm up restructuring terms.
Prada touts strong profits despite China sales slump
Milan (AFP) March 9, 2023 -
Italian luxury group Prada said Thursday its profits jumped in 2022 as strong sales in Europe and the United States offset declines in China, and that it expects its sales to outpace the market this year.
It follows a trend across the luxury goods sector that saw record sales and profits last year despite stifled global growth and disruptions in China due to draconian coronavirus-related travel restrictions.
Prada Group, which also includes brands Miu Miu and Church's, said net profits soared 58 percent to 465 million euros ($492 million). That beat the analyst consensus established by financial data provider Factset by 10 million euros.
Revenues climbed 25 percent to 4.2 billion euros, also beating the analyst consensus.
But the company saw slight declines in China resulting from stores closures during lockdowns periods.
"We performed well across all product categories and geographies, more than offsetting weakness in China due to Covid-19," said Prada executive director Patrizio Bertelli.
Sales spiked in Europe by 59 percent, driven by the recovery of international tourism from the second quarter, while the US market saw steady growth of 37 percent.
Looking ahead at 2023, "we expect revenue growth to remain solid and above market average," said Andrea Guerra, the group's new chief executive.
China's scrapping of its last zero-Covid policies in January is being looked at as a growth opportunity for the sector this year.
"China has restarted to be an engine of growth, however, in this ever-changing scenario, we will remain vigilant and maintain a disciplined approach to costs and capital allocation," Guerra said.
Having joined in January, Guerra will be at Prada's helm until Lorenzo Bertelli, eldest son of former CEO Patrizio Bertelli and designer Miuccia Prada, transitions into the role.
Markets tumble as bank worries spread from Wall Street
Hong Kong (AFP) March 10, 2023 - Asian and European markets sank again Friday following a rout on Wall Street with banks taking a hefty hit after signs of trouble at a regional US lender sparked concerns about the wider sector.
The sell-off comes as traders nervously await the release of US jobs data later in the day, with many fearing a forecast-beating figure could press the Federal Reserve to ramp up borrowing costs more than previously thought.
US lenders were sent into a tailspin Thursday after SVB Financial Group, which specialises in venture-capital financing, announced a stock offering and offloaded securities to raise much-needed cash as it struggles with falling deposits.
The firm's shares collapsed 60 percent in New York as it said it lost $1.8 billion following the sales.
In a bid to prevent a run on the bank, SVB CEO Greg Becker asked clients to stay calm during a conference call Thursday, Bloomberg News reported, citing someone familiar with the matter.
The news came as crypto banking giant Silvergate said it planned to close as the sector faces more turmoil.
Major US banks suffered hefty losses, with Wall Street titans including JP Morgan, Bank of America, Wells Fargo and Citigroup all deep in the red.
Data showing more people than expected made jobless claims last week -- indicating a softening of the labour market -- was unable to soothe investor worries, and all three main indexes were deep in the red by the close of trade in New York.
US Treasury yields sank as investors flocked to the safety of government bonds.
While higher borrowing costs can be beneficial for banks, many that took out loans and made other investments during the period of ultra-low rates have seen their value erased as the Fed tightens monetary policy to fight inflation.
Lenders are also struggling to keep customers and so offer better rates, or sell assets at a discount, putting pressure on the smaller banks.
"We have been in a zero-interest regime for a multiyear period and banks have operated in a certain way," said Jens Nordvig, of Exante Data and Market Reader.
"Certain banks are going to have difficulty in a totally different environment."
- Eyes on US jobs -
And SPI Asset Management's Stephen Innes said: "In days like this, 'bad news is indeed bad news', especially when the potential of massive mortgage defaults enters the market purview.
"Even the swelling jobless ranks offered little relief to nervous investors. Traders draw a straight line from bulging jobless ranks to mortgage defaults and rotate into safety."
He offered a word of warning about the outlook, adding: "Provided (the Fed) are prepared to use their most blunt tool, higher for longer interest rates, it will be challenging to express a lasting 'risk-on view', given that the choppy policy waters may not offer as plain sailing as it was at the beginning of the year."
Asian markets were well down, with banks taking a hit.
HSBC lost more than three percent in Hong Kong, National Australia Bank sank three percent in Sydney, while Tokyo-listed Mitsubishi UFJ Financial Group gave up more than six percent.
Hong Kong's Hang Seng Index fell three percent -- wiping out all the year's gains -- while Sydney shed more than two percent.
Tokyo, Shanghai, Singapore, Seoul, Taipei and Mumbai were off more than one percent, while there were also losses in Jakarta, Bangkok, Manila and Wellington.
In early European business, Deutsche Bank and BNP Paribas fell more than five percent apiece, while Lloyds sank four percent.
London opened sharply lower even as data showed the UK economy rebounded in January to grow 0.3 percent, having narrowly avoided a recession in the last quarter of 2022. Paris and Frankfurt were also sharply down.
And there is a fear of further big losses if the US jobs report comes in above expectations later Friday after Fed boss Jerome Powell warned officials were ready to hike rates even more if data showed the economy remained robust.
"With all the panic around the banking system, if the job report is good, that's not good for markets," Shana Sissel, of Banrion Capital Management, told Bloomberg Radio.
The Fed would "kind of have to stay with the policy that they've been communicating", she added.
On currency markets, the yen weakened as the Bank of Japan decided against making any changes to its ultra-loose monetary policy, after boss Haruhiko Kuroda's final meeting.
The Japanese unit briefly eased to around 137 per dollar -- from 136 before the announcement -- before strengthening a little.
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