Chinese property giant deleted after spectacular fall

The shares of the Chinese ownership giant Evergrande was downloaded from the Hong Kong stock market on Monday after more than a decade and a half of trade.

It marks a gloomy stage for what has ever been the largest real estate company in China, with a stock exchange of over $ 50 billion (£ 37.1 billion). It was before his grand collapse under the weight of the huge debts that feed his meteoric rise.

Experts say the deletion was inevitable and final.

“After giving up, he won’t come back,” says Dan Wang, China’s director at Consultancy Consultancy Eurasia Group.

Evergrande is now the most famous for its participation in a crisis, which has been dragging in the world’s second largest economy for years.

Just a few years ago, the Evergrande Group was a brilliant example of China’s economic miracle.

Its founder and chairman Hui Ka Yang has risen from a modest beginning in rural China to head the forbes list of the most wealthy people in Asia in 2017.

Since then, his wealth has dropped from approximately $ 45 billion in 2017 to less than a billion, his fall from Grace as exceptional as his company.

In March 2024, Hui was fined $ 6.5 million and banned from the Chinese capital market for his company’s life overestimates its revenue by $ 78 billionS

Liquidators are also investigating whether they can repay money for personal property creditors of G -Ni.

At the time of its collapse, Evergrande had about 1300 projects under development in 280 cities in China.

The widespread empire also included an electric carmaker and the most successful football team in China, Guangzhou FC that was Football league Earlier this year, after failing to pay enough of its debts.

Evergrande was built at $ 300 billion ($ 222 billion) loans money, winning him the imperceptible title of the world’s most dealership entrepreneur.

The rot, set after Beijing, brought new rules in 2020 to control the amount that big developers can occupy.

The new measures have led Evergrande to offer its properties at great discounts to ensure that the money is coming to keep the business in sailing.

Struggling to meet interest payments, the company soon has overdue some of its overseas debt.

After years of legal disputes, the Hong Kong Supreme Court ordered the company to be completed in January 2024.

Evergrande’s shares have been threatened by deletion since they were suspended by trading after the court order.

At this point, the crisis covering the company deleted more than 99% of its stock exchange assessment.

The liquidation order came after the company failed to offer a working plan to throw billions of dollars overseas liabilities.

Earlier this month, the liquidators revealed that Evergrande’s debts are currently amounting to $ 45 billion and that he has only sold $ 255 million assets so far. They also said they thought a complete business repair “would be out of reach.”

“The utterance is certainly symbolic now, but this is such a cornerstone,” says G -ja Wang.

There is only which lenders are paid and how much they can get in the bankruptcy process, says Professor Shitron Kiao of Duke University.

The next hearing of liquidation must be held in September.

China faces a number of major problems including US President Donald Trump’s tariffsgreat debt to local self -government, Weak consumer expenses., unemployment and an aging population.

But experts say that Evergrande’s collapse, along with the serious problems that other developers face, have hit the country most.

“The decline of the property is the biggest drag of the economy and the ultimate reason why consumption is suppressed,” says Gi Wang.

This is especially problematic as the industry represents about a third of the Chinese economy and was a major source of income for local authorities.

“I do not think China has found a viable alternative to support its economy on a similar scale,” says Professor Coio.

The property crisis has led to “massive redundancies” by highly designed developers, says Jackson Chan of the Bondsupermart Financial Market Studies platform.

And many employees of the real estate industry who have maintained their jobs have observed major wage cuts, he adds.

The crisis also has a big impact on many households as they tend to put their savings into property.

With the reduction of housing prices by at least 30%, many Chinese families have seen that their savings are falling in value, says Alicia Garcia-Herraro, chief economist of the Asia-Pacific region in the French bank Natixis.

This means that it is less likely to spend and invest, she adds.

In response, Beijing announced a number of initiatives aimed at reviving the housing market, stimulating consumer costs and intensifying the broader economy.

They range from measures to support the new homeowners and support the stock market to incentives to buy electric cars and household goods.

Despite the hundreds of billions of dollars that Beijing has poured into the economy, China’s once blown growth has relieved to “about 5%”.

Although most Western countries would be more than satisfied with this, it is slow for a country that has growth over 10% annually in 2010.

In short, probably not.

Even when Evergrande continues to grab titles, several other Chinese real estate companies are still facing big challenges.

Earlier this month, China South City Holdings received an order from the Hong Kong Supreme Court, making it the largest entrepreneur to be forced to liquidate after Evergrande.

Meanwhile, the rival real estate giant Country Garden is still trying to secure a deal with its creditors to write off more than $ 14 billion unpaid external debt.

After a series of postponements, his next hearing of the Honge -Supreme Court in Hong Kong should be held in January 2026.

“The whole real estate sector is difficult. More Chinese property companies will collapse,” says Professor Ciao.

While the Chinese government has taken a number of measures to help the real estate market and to support the economy as a whole, it has not embarked on direct rescue of developers.

G -H Chan says these initiatives seem to have a positive impact on the real estate market: “We think the bottom (reached is reached) and should be in a slow recovery. However, we probably do not expect the recovery to be very strong.”

Wall Streetman Sachs investment giant warned in June that property prices in China would continue to fall until 2027.

G -ja Wang agrees and estimates that the affected property market in China will “hit the bottom” in about two years when demand is finally ultimately catching up with supply.

But Mrs. Garcia-Herrero says it in Starker, “There is no real light at the end of the tunnel.”

Beijing sent “a clear message about his intention not to save the housing sector,” adds G -ja Wang.

The Chinese government is careful to avoid the type of measures that could encourage more risky behavior from an already indebted industry.

And while In the Boom Times, the property market was a key engine of China’s economic growth, priorities of the ruling Communist Party are now hiding elsewhere.

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

As G -ja Wang says, “China is a deep transition to a new era of development.”