Details
🏚️ Delisting: China Evergrande will be removed from the Hong Kong Stock Exchange on August 25 after trading has been suspended since January 2024. The move marks the end of a former stock market star valued at over USD 50 billion in 2017.
💰 Debt Mountain: According to liquidators, recognized claims have now reached USD 45 billion, far higher than the previously reported USD 27.5 billion. The company faces 187 creditor claims.
🏦 Slim Proceeds: Since the liquidation began 18 months ago, only USD 255 million has been raised from asset sales, including stakes, artworks, and club memberships.
⏳ Lengthy Process: Liquidators expect the winding-up to take more than a decade due to complex ownership structures.
⚖️ Legal Action: Evergrande is suing PricewaterhouseCoopers, CBRE, and Avista for alleged misvaluations and breaches of duty related to 2018 reports.
Why It Matters
- Symbolic Crisis: The collapse of China’s former largest property developer epitomizes the deep slump in the sector and its impact on the broader economy.
- Creditor Risk: High recognized claims alongside low recoveries highlight the significant loss risk for both international and domestic investors.
- Market Signal: The case sends a clear warning to other heavily indebted developers facing similar delisting and liquidation risks.
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