China Evergrande to delist in Hong Kong, marking a watershed in country's property crisis
The world's most indebted property developer was informed by the local bourse on Friday that its listing would be cancelled for failing 'to fulfil any of the requirements' to resume trading, the company said in a filing.
Evergrande's shares have been suspended from trading since January 29, 2024 – the same day a Hong Kong court ordered its liquidation after it failed to present a viable restructuring plan. Under the exchange's rules, a company that remains suspended for 18 consecutive months is subject to delisting.
This would mark the end of Evergrande's 16-year trading status in Hong Kong, which spanned an era when the company was the poster child of China's property boom.
The
Guangzhou -based developer fell from its perch in 2021 after Beijing rolled out the so-called
three red lines policy, which reined in overleveraged developers to cool down the mainland's housing market.
The company, which amassed more than US$300 billion in liabilities at its peak, defaulted on its offshore bonds in late 2021, sparking global concerns about spreading the contagion from China's housing downturn.
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