Evergrande Delisted in Hong Kong After Debt-Driven Collapse
Chinese property giant Evergrande has been formally removed from the Hong Kong stock exchange, drawing a line under the dramatic downfall of what was once the country’s largest real estate developer.
The delisting ends more than 15 years of trading for the company, whose market value at its peak exceeded $50bn (£37bn). Its implosion, triggered by more than $300bn in debt, has become the most high-profile symbol of China’s property sector crisis.
Analysts say the move was inevitable. “Once delisted, there is no coming back,” said Dan Wang, China director at Eurasia Group.
From rapid ascent to collapse
Founded by Hui Ka Yan, Evergrande expanded aggressively during China’s housing boom, building more than 1,300 projects across 280 cities. Hui, who topped Asia’s rich list in 2017 with a fortune of $45bn, has since lost nearly all his wealth. In March this year, he was fined $6.5m and permanently banned from China’s capital markets for inflating revenues by $78bn.
The group’s empire extended beyond property to include an electric carmaker and Guangzhou FC, once China’s most successful football club, which was expelled from the league this year amid financial turmoil.
Beijing’s 2020 debt-control rules exposed the fragility of Evergrande’s finances. Forced to slash property prices to generate cash, the developer defaulted on overseas debts soon after. A Hong Kong court ordered its liquidation in January 2024 after Evergrande failed to present a workable restructuring plan.
Fallout and wider economic impact
At its height, Evergrande’s stock price collapse wiped out more than 99% of its value. Liquidators have since revealed the company still owes about $45bn while managing to sell only $255m in assets. They have warned a full recovery of creditor funds is unrealistic.
The property slump sparked by Evergrande and other developers has become a major drag on the world’s second-largest economy. With real estate once contributing around a third of China’s GDP, the downturn has led to mass layoffs, falling household wealth, and reduced consumer spending. Housing prices have dropped by at least 30%, eroding family savings in a country where property remains the primary store of wealth.
Beijing has rolled out stimulus measures to revive demand, from housing incentives to consumer subsidies, but growth has slowed to around 5% – a sharp contrast to the double-digit expansion seen a decade ago.
Uncertain future
Evergrande is not alone in its troubles. China South City Holdings was ordered into liquidation this month, while rival Country Garden is still negotiating with creditors over more than $14bn in offshore debt.
Experts warn that China’s property market may not stabilise for years. Goldman Sachs forecasts falling house prices until at least 2027, while some analysts believe the sector will bottom out only once supply and demand come into balance.
For now, the end of Evergrande’s trading underscores the depth of the crisis. “The delisting is symbolic, but it is a milestone,” Wang said. “The real question is how much creditors can recover as the bankruptcy process unfolds.”
