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8h ago

China Evergrande to Delist From Hong Kong Exchange After 18-Month Trading Halt

Liquidators say asset recoveries have been minimal despite soaring debt burdens, ruling out any meaningful restructuring

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China Evergrande Group said its Hong Kong stock will be delisted, marking the end of an era for the former high-flying developer whose demise came to symbolize the country’s property bust. (Photo for representational purposes only)
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Overview

  • The Hong Kong Stock Exchange notified China Evergrande that its shares will be removed on Aug. 25 after 18 months of suspended trading, and the company will not seek a review.
  • Court-appointed liquidators report that Evergrande’s total liabilities exceed prior estimates, with about US$255 million of assets sold and only US$11 million realized from the parent company.
  • They caution that just US$167 million of subsidiary-held asset sales has been delivered so far, underscoring the challenge of recovering value from onshore and offshore units.
  • The developer’s failure to present a viable debt plan in January 2024 triggered a winding-up order, leaving shareholders facing the near-total loss of their investments.
  • Evergrande’s collapse, highlighted by peak liabilities above US$300 billion and founder Hui Ka Yan’s regulatory penalties, epitomizes the broader downturn in China’s property sector.