Another Chinese property developer is sinking as junk bonds sell off

Investors have a new worry in China’s battered real estate sector. 
 

Kaisa Group Holdings Ltd. shares plunged a record 18% in Hong Kong after two credit assessors downgraded the Shenzhen-based developer and said it may struggle to refinance dollar debt. The company’s 6.5% bond due Dec. 7 fell 5.9 cents to 52.1 cents on the dollar, poised for a record low, amid a broad selloff in debt issued by Chinese developers. 

The firm is the latest to come under pressure as a spike in borrowing costs crushes property firms with the worst balance sheets. Spreads on Chinese high-yield debt over