Chinese property veteran became a delist after a brilliant fall

The shares of Chinese property veteran Evergrande will be taken from Hong Kong’s stock market on Monday after trading more than a decade.

It is once a serious milestone for China’s largest real estate firm, with a stock market assessment of over $ 50bn (£ 37.1bn). It was before its spectacular collapse under the weight of huge debt that operated its meteorite growth.

Experts say the delisting is both unavoidable and final.

Dan Wang, a Chinese director of the political risk consultancy Eurasia Group, says, “Once he is a delist, no one is coming back.”

Evergrande is now most known for its share in a crisis that has been dragged over the second largest economy in the world over the years.

A few years ago the Evergrande Group was a bright example of China’s economic miracle.

Its founder and chairman Hua of Hua of Hui reached the top of the Forbes list of Asia’s wealthiest people in 2017 from a humble start in rural China.

His fate has since declined to his decline from grace as an extraordinary as his company, an estimated $ 45BN in 2017.

In March 2024, Sri Hua was fined $ 6.5m and was banned from China’s capital market for his company, which overtook his revenue from $ 78BN.

The liquidators are also searching for whether they can charge cash from the personal property of Sri Hua.

At the time of its collapse, Evergrande had some 1,300 projects under development across 280 cities across China.

The huge empire also included an electric car manufacturer and China’s most successful football team, Guangzhou FC, which was excluded from the Football League earlier this year, after failing to make adequate payments of their loans.

The money borrowed to Evergrande was built on $ 300BN (£ 222bn), which makes it the unacceptable title of the world’s most indebted property developer.

After Beijing, the rot brought in the new rules in 2020 to control the amount of big developers borrowing Big Developers.

The new measures inspired Evergrande to offer their properties at a huge discount to ensure that money is coming to preserve the business.

Struggling to meet interest payment, the firm soon missed some of its foreign loans.

After years of legal torture, the Hong Kong High Court ordered the company to be injured in January 2024.

Evergrande’s shares were threatened to delisting since then they were suspended from business following a court order.

Till that point the crisis attached to the firm had eliminated more than 99% from its stock market evaluation.

The liquidation order came when the company was unable to offer a practical plan to shed billions of dollars of foreign liabilities.

Earlier this month, liquidaters revealed that Evergrande’s loans were currently at $ 45BN and so far it was sold only $ 255M assets. He also said that he believes that a complete over -over -business of business will prove out of reach “.

“Now is definitely symbolic, but it is such a milestone.”

Shitong Kiao, Professor at Duke University, says, all remain which creditors are paid and how much they can get in the bankruptcy process.

The next liquidation hearing is scheduled to be held in September.

China is facing many major problems, including US President Donald Trump’s tariffs, high local government loans, weak consumer expenses, unemployment and an aging population.

But experts say that the collapse of Evergrande with serious problems faced by other developers has hit the country the most difficult.

“Property has been the biggest drag on the economy, and why consumption is suppressed,” says Ms. Wang.

This is particularly problematic because the Chinese economy was one -third of the industry and a major source of income for local governments.

“I don’t think China has found a viable option to support its economy on a uniform scale,” says Professor Kiao.

Property Crisis has led a “large-scale trimming” by heavy-scorching developers, saying Jackson Chan from Financial Markets Research Platform Bondsuparmart.

He said that many real estate industry employees have seen a large salary cut in keeping their jobs.

The crisis is also having a major impact on many homes as they put their savings in property.

With a low 30%decline in housing prices, many Chinese families have seen their savings fall in the price, calling Alicia Garcia-Hero, the Chief Economist of Asia Pacific at French Bank Natics.

This means that they are less likely to spend and invest, she says.

In response, Beijing has announced a fleet of initiative to revive the housing market, stimulate consumer expenses and promote a comprehensive economy.

They range from measures to help the owners of the new home and support the stock market to encourage electric cars and household items.

Despite hundreds of billions of dollars, Beijing has added to the economy, the one-time growth of China has increased to “about 5%”.

While most western countries will be more happy with this, it is slow for a country that recently saw an increase of more than 10% per year as 2010.

In short, perhaps not.

Even Evergrande made headlines, many other Chinese property firms are still facing major challenges.

Earlier this month, China South City Holdings was assigned a curved order by the High Court of Hong Kong, forcing it the largest developer that was forced into liquidation since Evergrande.

Meanwhile, rival Real Estate Giant Country Garden is still trying to secure a deal to write more than $ 14bn of outstanding foreign debt with its creditors.

Following a series of adjournment, its next High Court liquidation in Hong Kong is scheduled to be heard in January 2026.

Professor Kiao says, “The entire property sector has been in trouble. More Chinese property firms will collapse.”

While the Chinese government has taken several measures to help the property market to sideline and support the economy, as it has not hit the developers directly to bail bail.

Mr. Chan says that this initiative is making a positive impact on the property market: “We think it seems below [has been reached] And it should be in slow recovery. However, we probably do not expect recovery. ,

Wall Street Investment veteran Goldman Sachs warned in June that property prices in China would continue to fall until 2027.

Ms. Wang agrees, and guesses that China’s stricken property market will “hit from the bottom” in about two years when the demand ends with the supply.

But Ms. Garcia-Hero said it in starrer words: “There is no real light at the end of the tunnel.”

Says Ms. Wang, “Beijing has sent a clear message with the intention of not excluding the housing sector.”

The Chinese government has been careful to avoid such measures that can already encourage more risk behavior by heavy indebted industry.

And where At the time of boom, the property market was a major driver of China’s economic development, the ruling Communist Party’s priorities are now elsewhere.

President Xi Jinping focuss more on high -tech industries such as renewable energy, electric cars and robotics.

As Ms. Wang says, “China is in a deep transition for a new era of development.”