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Evergrande to Exit Hong Kong Exchange After Liquidators Uncover Ballooning Debt

Investors will face near-total losses as only US$167 million has been returned against more than US$300 billion in debt

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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

  • Hong Kong’s bourse will cancel Evergrande’s listing on Aug. 25 and the company will not seek a review of the decision.
  • Court-appointed liquidators report liabilities far exceeding earlier estimates and say any holistic restructuring is out of reach.
  • To date, asset realisations total about US$255 million, with just US$167 million upstreamed to the group amid complex subsidiary structures.
  • Trading of Evergrande shares has been suspended since Jan. 29, 2024, after a Hong Kong court ordered liquidation for failure to present a viable debt plan.
  • The impending delisting highlights the severity of China’s multi-year property crisis and may heighten pressure on other indebted developers.