Evergrande, once one of China’s largest property developers, has been delisted from the Hong Kong stock exchange, marking a significant decline in its status. The delisting occurred following an 18-month halt on trading, which began when the firm was placed into liquidation. Initially valued at over HK$400 billion (approximately US$50 billion), Evergrande’s market valuation fell to just over HK$2 billion (around US$260 million) as of Monday, with current shares trading at HK$0.16 (US$0.02).
In August, liquidators informed investors of the impending cancellation of the listing, and the company failed to meet a trading resumption deadline set by the exchange. The stock exchange’s website no longer displays Evergrande as of the delisting.
The company’s market value plummeted more than 99% from its peak in 2017, largely due to a downturn in China’s real estate sector. A temporary recovery during 2020, driven by government spending, was followed by tighter lending controls in 2021, which hindered Evergrande’s ability to manage its debts. The firm ultimately defaulted on approximately US$300 billion in liabilities.
In January 2024, a Hong Kong court issued a winding-up order for Evergrande after it failed to formulate a viable debt repayment plan. Liquidators are now working on recovering investments for creditors, including legal action against auditing firm PwC.
This situation reflects broader challenges in China’s property market, which has faced declining sales and prices since 2021. Another developer, China South City, was also put into liquidation recently, highlighting ongoing instability in the sector. The Chinese government continues to seek ways to revitalize this critical area of the economy, which affects various sectors, including steel and consumer spending.
Source: https://www.theguardian.com/business/2025/aug/25/evergrande-china-group-delisted-hong-kong-stock-exchange