BEIJING (dpa-AFX) - China Evergrande Group, once the country's largest property developer and a symbol of its rapid urban growth, has been formally delisted from the Hong Kong Stock Exchange, marking the collapse of one of the world's most indebted companies.
The move comes after trading in Evergrande's shares was suspended in January 2024, when a Hong Kong court ordered the company's liquidation. At its peak in 2017, Evergrande's market capitalization exceeded $50 billion. By the time of delisting, it had plunged to just over $280 million, with shares losing more than 99% of their value.
Evergrande's downfall stems from years of aggressive expansion fueled by more than $300 billion in borrowing. The company defaulted in 2021 after Beijing's 'three red lines' policy restricted developer debt levels, sparking a liquidity crisis across China's property sector. The turmoil forced Evergrande to slash prices, miss debt repayments, and eventually file for bankruptcy protection in the U.S.
The collapse has had far-reaching consequences. China's property market once accounting for nearly a third of national GDP remains in a prolonged slump. Home sales, prices, and construction activity have dropped sharply, weighing on consumer confidence and local government revenues. Millions of families who invested savings into unfinished Evergrande projects continue to face uncertainty.
Authorities have avoided a direct bailout, instead channeling support through state banks and encouraging state-owned developers to stabilize the market. Analysts warn that consolidation is inevitable, with private developers sidelined in favor of state-backed firms.
For creditors and overseas investors, recovery prospects remain bleak, with liquidators recently warning that Evergrande's true debt burden is far larger than previously disclosed. The delisting marks the final unraveling of what was once China's most ambitious property empire.
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