25 Aug 2025, 10:16
Evergrande's Delisting from the Hong Kong Stock Exchange Marks a Crisis Stage
- Evergrande was delisted from the exchange following a court ruling on liquidation.
- The company accumulated debts of 300 billion dollars.
- The Evergrande crisis has seriously impacted the Chinese economy.
The company Evergrande, once known as the largest developer in China, was delisted from the Hong Kong Stock Exchange on September 22, 2025. This was the result of a court ruling on liquidation that was issued in January 2024.
Founded by Hui Ka Yan in 1996, at its peak, the company had a market capitalization of over 50 billion dollars. However, the company accumulated debts of 300 billion dollars, which became the reason for its downfall.
In 2020, the Chinese government introduced new rules to limit the borrowing of large developers. This led to a decrease in property prices and payment problems for Evergrande.
As of September 2023, the company filed for bankruptcy in New York, seeking to protect its assets in the USA, while liquidators investigate the possibility of recovering funds for creditors.
The Evergrande crisis had serious repercussions for the Chinese economy, which relies on real estate, which has become approximately a third of GDP. The decline in investment and rising unemployment in this sector has hit consumer demand.
The Chinese government has not provided direct assistance to developers, aiming to eliminate excess risk from the financial system. Currently, Evergrande is a symbol of economic difficulties that the country is facing.
Tags: China/Economy