US EditionChinese property giant Evergrande delisted after spectacular fall
Evergrande's $45 billion debt and asset sales of just $255 million reflect deep financial trouble amid Beijing's efforts to limit developer borrowing since 2020.
- On Monday , China Evergrande Group was delisted from the Hong Kong Stock Exchange after a committee at the bourse decided to cancel its listing due to failure to resume trading within 18 months.
- Beijing's 2020 borrowing limits set conditions for Evergrande's liquidity crisis, leading to its 2021 default and a Hong Kong winding-up order suspending trading on Jan 29, 2024.
- Built on about $300bn of borrowed money, Evergrande's debts stand at $45 billion with only $255m recovered from asset sales, its market value wiped by more than 99%.
- The delisting will close a chapter in China's property crisis, with housing prices down at least 30%, Chinese families losing savings, and creditors facing low recoveries amid a decade-long liquidation.
- Experts say the delisting is a symbolic end to the sector's golden age, warning more firms may collapse as Beijing government signals no bailout and Goldman Sachs forecasts prices falling amid China's growth rate around 5%.
101 Articles
101 Articles
The moment went smoothly. China Evergrande, a real estate developer who once represented the peak of China’s economic capacity, was formally removed from the Hong Kong Stock Exchange on Monday. Evergrande, who made her financial debut in Hong Kong 16 years ago, was once the fastest growing real estate developer in a country brimming with promises of profit for investors. It will be remembered as one of the world’s most indebted companies, whose …
Georgia Public Broadcasting
nprEvergrande's delisting in Hong Kong: key facts to know
At its peak, China Evergrande Group was worth more than $50 billion. But it all came crashing down in 2021. It was massively in debt and unable to complete some existing projects.
For two decades, the construction industry has supported China's economic growth. Now, the once largest real estate developer is flying off the stock exchange. This marks a final step, but is not a solution to a deep crisis.
Associated Press News
What to know about the delisting of property developer China Evergrande's shares in Hong Kong
Shares in China Evergrande, the real estate developer whose downfall led a collapse in the country’s property market, have been delisted from Hong Kong's stock exchange as creditors work to wind up debts that totaled over $300 billion.
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