AsianFin -- China Evergrande Group, once among the country’s largest property developers, has been delisted from the Hong Kong Stock Exchange, marking the collapse of a company that epitomized China’s real estate boom and subsequent crisis.
The removal took effect Monday following an 18-month suspension in trading, after Evergrande was ordered into liquidation. At its peak, the developer was valued at more than HK$400 billion (US$50 billion).
Liquidators informed investors earlier this month that the listing would be canceled and they would not appeal, after the exchange ruled the company had missed its July deadline to resume trading. By the time trading was halted in January 2024, Evergrande’s value had plunged to just over HK$2 billion (US$260 million), with its 13 billion issued shares priced at only HK$0.16 (US$0.02).
The company has lost more than 99% of its market capitalization since its 2017 peak, underscoring the prolonged downturn in China’s property market and mounting risks for foreign investors navigating the country’s financial system.
Timeline of Evergrande’s Fall
August 2021
Many projects across China halt construction due to overdue payments.
Central bank and banking watchdog summon executives, urging Evergrande to cut debt risks.
September 2021
Misses two offshore bond coupon payments worth US$131 million.
Hires financial advisers, warns of cross-default risk.
November 2021
Founder Hui Ka Yan sells 1.2 billion shares for HK$2.68 billion (US$343 million).
March 2022
Suspends share trading, citing audit delays and investigation into its property management arm.
November 2022
Hong Kong mansion of Hui Ka Yan seized by China Construction Bank.
January 2023
PwC resigns as auditor amid disputes over 2021 accounts.
February 2023
Independent committee finds directors diverted loans via Evergrande Property Services.
March 2023
Announces offshore debt restructuring plans with bond-for-equity options.
April 2023
Gains partial support from creditors for restructuring.
July 2023
Reports losses of 476 billion yuan (2021) and 105.9 billion yuan (2022).
August 2023
Trading resumes after 17 months; shares plunge, losing 79% of value.
September 2023
State-owned insurer takes over Evergrande Life Insurance.
Staff at Evergrande Financial Wealth Management detained.
Founder Hui Ka Yan placed under investigation.
October–December 2023
Multiple court adjournments in Hong Kong for debt restructuring.
Offshore bondholders reject revised restructuring terms.
January 2024
New energy vehicle unit’s vice chairman detained.
Evergrande Property Services sues parent for 11.4 billion yuan guarantees.
Bondholder group joins liquidation petition.
Hong Kong court issues liquidation order on Jan 29; trading suspended.
March 2024
Evergrande fined 4.18 billion yuan for fraudulent bond issuance.
Chairman fined 47 million yuan and banned from securities markets for life.
Liquidators launch lawsuits to recover US$6 billion from Hui, ex-wife, and executives.
August 2025
Hong Kong Stock Exchange cancels Evergrande’s listing after 18 months of suspension.
Liquidators report US$255 million in asset sales versus US$45 billion in creditor claims.
From Boom to Bust
Evergrande’s downfall has become a defining symbol of China’s property sector downturn, which has weighed on growth, shaken investor confidence, and raised questions about Beijing’s ability to stabilize its financial system. The company’s debt troubles became public in mid-2021, when missed payments and stalled construction projects triggered widespread concern over systemic risk.
That August, regulators summoned senior executives and demanded the developer reduce its risks. The following month, Evergrande failed to pay US$131 million in offshore bond coupons, sparking fears of contagion across China’s financial system.
Founder Hui Ka Yan sold billions worth of shares in late 2021 as pressure mounted, while the group suspended trading in March 2022 after failing to release audited results and amid a probe into its property services arm. A year later, Evergrande outlined restructuring plans offering offshore creditors a swap into new bonds and equity-linked instruments. Support proved mixed, and repeated delays pushed the company closer to insolvency.
Court-ordered liquidation came in January 2024, after Evergrande’s last-ditch restructuring proposals failed to win broad creditor support. Regulators later fined its flagship onshore unit 4.18 billion yuan (US$585 million) for fraudulent bond issuance and barred Hui from the securities market for life.
Evergrande’s collapse has rattled foreign investors who once viewed Chinese real estate as a reliable growth play. Offshore bondholders, who piled into the sector during its boom years, now face steep losses with only partial asset recovery. The delisting underscores the risks of investing in Chinese property developers, where defaults have rippled across the industry since 2021.
The company’s failure also reflects Beijing’s shifting stance on moral hazard. Authorities, once quick to intervene to backstop troubled developers, have allowed Evergrande to collapse while rolling out targeted support measures for homebuyers and local governments to contain fallout.
At its peak, Evergrande embodied the “build-and-borrow” model that fueled China’s urban expansion. But heavy leverage, declining demand, and tightening credit policies eventually exposed deep cracks.
The delisting formally closes Evergrande’s chapter as a listed company, though its liquidation proceedings remain far from over. For global investors, the saga leaves a sobering lesson: in China’s property sector, few companies are too big to fail.
