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China Evergrande Group will be delisted from the Hong Kong stock exchange on August 25, 2025, following a January 2024 liquidation order after failing to restructure over USD 300 billion in debt. Trading in its shares had been suspended for 18 months, breaching exchange rules, leaving shareholders facing near-total losses. Once China's largest developer by sales, Evergrande's collapse epitomises the property sector downturn triggered by a 2020 crackdown on excessive borrowing. Founder Hui Ka Yan has been detained, and the firm and its auditors fined for misconduct. With liquidators expecting only modest asset recoveries, the delisting closes a turbulent chapter in China's housing crisis.
A chapter in China's housing crisis is drawing to a close with the upcoming delisting of China Evergrande Group from the Hong Kong stock exchange on August 25, 2025. This move follows a liquidation order issued in January 2024, after the company failed to present a viable restructuring plan for its massive debt, which exceeded USD 300 billion. The delisting is a direct result of the company's shares being suspended from trading for 18 consecutive months, a violation of the city's rules. This event carries a stark message for shareholders who now face the prospect of a near-total loss. Advertisement
The delisting marks the end of an era for a company that was once China's largest developer by sales. Evergrande's crisis is seen as a key event in a wider downturn in China's property sector that began in 2020 when regulators cracked down on excessive borrowing. This has led to defaults from numerous developers, including Country Garden and China South City Holdings, and has had a negative impact on China's economy.
The situation is further complicated by legal and regulatory actions against the company and its executives. The firm's founder, Hui Ka Yan, was detained on suspicion of committing crimes, and the company's subsidiary, Hengda Real Estate Group Company, was fined for falsifying financial records. An accounting firm, PwC, was also penalized for its role in auditing the company. Court-appointed liquidators have assumed control of some of the company's assets, but they have termed the realization of funds as "modest," and believe that a holistic restructuring is out of reach.
For many, the delisting represents a painful end to a long, uncertain journey. The decision to not appeal the delisting highlights the finality of the company's fate in its current form. As China continues to grapple with its housing crisis, the story of Evergrande's collapse and delisting stands as a powerful reminder of the risks within the country's property sector and the need for greater regulatory oversight.
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