Evergrande's Delisting Affects the Chinese Real Estate Market

• Evergrande has been delisted from the Hong Kong Stock Exchange through a stock suspension.
• The company's collapse highlights the problems of the Chinese real estate market.
• The government is attempting to stimulate the market through financial measures.

On September 25, 2025, the shares of the Chinese developer Evergrande were delisted from the Hong Kong Stock Exchange. This occurred after the company failed to provide a life-support plan for the restructuring of its debts, which exceed 340 billion US dollars. Evergrande, once the second-largest developer in China by size, has become a symbol of the problems facing the Chinese real estate market.

In 2021, Evergrande announced a default on its bonds, which led to a suspension of trading in its shares in January 2024. The Hong Kong court has approved the decision for the company's liquidation, as negotiations for restructuring have been ongoing without success. The stock exchange rules provide for the delisting of companies whose shares are not traded for 18 months.

Experts indicate that Evergrande's collapse underscores that no private company in China is too big to fail. The downfall of the company has been a significant moment for the real estate market, as it previously contributed close to a third of China's economic growth. In connection with the market collapse, many buyers have been left with unfinished projects and a decrease in property values.

Moreover, China's economy is facing multiple challenges, such as decreased consumer spending and high unemployment rates. The government is trying to stimulate the housing market through various measures, including financial incentives for new homeowners, but the pace of economic recovery has slowed to around 5%.

Evergrande was founded in 1996 by Xu Jiayin and quickly became a leader in the real estate sector, but its growth and decline reflect the overall state of the Chinese market. At the moment of its collapse, the company had around 1,300 projects under development across the country.

Tags: China/Economy