China Evergrande, once the mightiest property developer in China and the world’s most indebted real estate company, was officially delisted from the Hong Kong Stock Exchange on August 25, 2025, marking the end of a dramatic and prolonged chapter in China’s property market and economic history.
The company, which went public in Hong Kong in 2009, initially soared to prominence, with a market capitalisation reaching $51 billion at its peak in 2017. However, Evergrande’s fortunes dramatically reversed when it became overwhelmed by an unprecedented debt burden estimated originally at around $300 billion.
The company’s collapse triggered a housing sector downturn that has weighed heavily on China’s economy for more than five years, with ongoing repercussions still felt today.
Evergrande’s financial troubles intensified after Beijing implemented the three-red-lines policy in 2020 to restrict excessive borrowing by developers, leading to liquidity crises across the sector.
The company defaulted on multiple debt obligations in 2021, exposing the vulnerabilities of China’s property-centric growth model, which accounted for roughly one-third of the country’s GDP and served as a critical revenue source for local governments.
Trading in Evergrande’s shares was halted in January 2024 following a Hong Kong court’s issuance of a winding-up order, citing the company’s failure to propose a viable debt restructuring plan. Shares traded at over HK$31 at the IPO but plummeted below HK$0.20 in their final days, representing a collapse in value of more than 99 per cent.
Liquidators have disclosed that only $255 million worth of assets have been sold so far, while outstanding creditor claims exceed $45 billion, underscoring the magnitude of unresolved liabilities.
The company’s founder and chairman, Hui Ka Yan, once among Asia’s wealthiest individuals, faced a significant penalty in March 2024, including a $6.5 million fine and a lifetime ban from China’s capital markets for inflating company revenues by $78 billion. Legal actions are ongoing against Hui and other former executives to recover funds for creditors.
Evergrande’s delisting is considered by market observers as symbolic but definitive, closing the door on the company’s tumultuous decline and serving as a cautionary tale about the risks of leverage and overreliance on real estate in China’s economic model.
Experts suggest that while Evergrande’s crisis may be unique in scale, other developers in the sector face continued financial pressures amidst a persistent housing market slump characterised by falling sales, prices, and investment.
The delisting came amid a surge in Chinese and Hong Kong property stocks driven by government stimulus expectations and some loosening of purchasing restrictions. However, scepticism remains regarding the sector’s longer-term recovery.
China’s real estate sector downturn has not only suppressed consumption, a key engine of growth, but also resulted in massive layoffs and wage cuts across several property firms, exacerbating economic and social challenges as China grapples with broader issues such as trade tensions, local government debt, and demographic shifts.
