Shares of CIFI Holdings (Group) Co.
884,
dropped to record lows on Thursday after the Chinese property developer said it is having issues distributing cash for an investment trust product.
The stock was last down 26% at HK$0.64, putting the company on the path toward its worst-ever closing level since its listing in 2012. Since Wednesday, when news of a missed payment related to an investment product first circulated widely in media reports, shares have fallen almost 50%.
CIFI said late Wednesday in response to the media reports that it is facing issues with an equity investment trust product used to finance one of its projects in the northern Chinese city of Tianjin.
“The market sentiment on the local housing market has affected the progress of development and sales of such project, thus affecting the cash distribution of the said investment trust product,” CIFI said in a statement. The company is “in active discussion” with the financial institution that issued the trust product for “a reasonable solution,” it added.
Shanghai-based CIFI said it had made an interest payment on time Wednesday for offshore notes due in 2024.