China's Kaisa Offers Bond Exchange to Ease Cash Crunch

China's Kaisa Offers Bond Exchange to Ease Cash Crunch

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Business

University

Hard

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The transcript discusses Kise's challenging bond maturity extension offer, which aims to extend the maturity of a bond due in two weeks by 18 months. The offer expires next Thursday, and bondholders must decide whether to accept it to avoid default. The transcript also highlights Chengdu's measures to support developers, which are positively received by the market. These measures could spread to other cities, indicating government support and potentially easing the liquidity crisis in China's property sector.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Kise attempting to do with the bond that is due soon?

Increase the bond's interest rate

Extend its maturity by 18 months

Cancel the bond entirely

Convert the bond into equity

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happened when Modern Lands tried a similar bond extension?

They converted the bond into equity

They canceled the request and later defaulted

They successfully extended the bond

They increased the bond's interest rate

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might bondholders do when the Kise offer expires?

Force a restructuring of the note

Both accept the offer and force restructuring

Neither accept the offer nor force restructuring

Accept the offer to avert default

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the market react to Chengdu's measures to support developers?

Negatively, causing a drop in shares

Indifferently, with no change in shares

Positively, with shares rallying

Confused, causing market volatility

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could be the impact of similar measures in other Chinese cities?

Cause a decrease in government support

Lead to more defaults in the property sector

Result in higher interest rates for developers

Ensure project completion and address onshore liabilities