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%.
72 Articles
72 Articles
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.
Winnipeg Free Press
What to know about the delisting of property developer China Evergrande's shares in Hong Kong
Breaking News, Sports, Manitoba, Canada
On Monday, August 25, China's real estate giant Evergrande was removed from the Hong Kong Stock Exchange, a new stage in its fall, which became emblematic of the difficulties of the second world economy.
For the Chinese company Evergrande, the end is on the stock market. The collapse of the former construction giant stands for China's real estate crisis. And this continues to be a heavy burden on the economy. By Benjamin Eyssel.
After 15 years, the Hong Kong Stock Exchange ends trading in Evergrande shares. The former building giant stands for China's real estate crisis. How could it get this far?
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