China Evergrande Group, world's most indebted property developer, to delist from Hong Kong Stock Exchange after largest debt collapse

China Evergrande Group will be delisted from Hong Kong Stock Exchange. The developer's shares will be delisted from the Hong Kong Stock Exchange on August 25 after they failed to resume trading per listing rules, the firm also said in a filing. Shares of Evergrande, once China's top developer which was listed in Hong Kong in 2009, have been suspended from trading since January 29, 2024, the day it received a liquidation order from the Hong Kong High Court. Evergrande is not listed on mainland Chinese stock markets.

China's Largest Debt Collapse

Liquidators of China Evergrande Group, the world's most indebted property developer, said on Tuesday they have sold about $255 million of its assets 18 months into the process and taken control of more than 100 of the company's subsidiaries. Evergrande's debt collapse is the largest in China, lawyers say, and the liquidation has proved challenging as the majority of Evergrande's units and assets are offshore and many of them have been seized by creditors.


The liquidation order came after it failed to provide a viable restructuring plan for its $23 billion offshore debt. The company appears set to be delisted from the Hong Kong bourse as a result of its failure to meet the exchange's rules on resumption of trading within 18 months of the commencement of trading suspension.

Its capitalisation, which once topped HK$400 billion ($51 billion), had shrunk to HK$2.2 billion when share trading was halted. The delisting of what had been one of China's prestige companies would add to gloom hanging over other developers which are scrambling to stay afloat and avoid getting into liquidation litigation by securing creditors' support to revamp debt.

China Property Market

China's property market, once a key growth driver for the world's second-largest economy, has been in a multi-year tailspin despite repeated government attempts to revive weak consumer demand.

More than $140 billion, or more than 70 per cent, of China property dollar bonds have defaulted since 2021, according to investment platform FSMOne Hong Kong, and the majority of them are still in various stages of being restructured.

Property construction in China is expected to decline another 30 per cent by 2035 due to structural changes in demand, ANZ analysts said in a June report, which could cast a long shadow over debt restructuring efforts in the near to medium term.

FAQs

Q1. What do we know about China's property market?
A1. China's property market, once a key growth driver for the world's second-largest economy, has been in a multi-year tailspin despite repeated government attempts to revive weak consumer demand.

Q2. Where is China Evergrande Group listed?
A1. China Evergrande Group will be delisted from Hong Kong Stock Exchange. Evergrande is not listed on mainland Chinese stock markets.