Evergrande: From $50 billion to bankruptcy

Evergrande, which shone as China’s largest real estate developer, was delisted from the Hong Kong Stock Exchange after years of a debt-fueled growth strategy. This end for the company is seen as one of the most striking examples of China’s real estate crisis.

Its rise, which began with a valuation of $9 billion in its 2009 IPO, reached $51 billion in 2017.

However, after a massive debt burden and failed restructuring attempts, its value today is only $282 million.

Evergrande, with debts exceeding $300 billion, holds the title of the world’s most indebted developer, and its shares have not been traded since the liquidation decision in 2024.

Due to its inability to restart operations within 18 months, the company’s shares were completely delisted from the stock exchange. Experts say this process is not unique to Evergrande, and that more developers may share the same fate due to the liquidity crunch in the sector. The company’s founder, Hui Ka Yan, was banned from the market for life and faces ongoing fraud charges. To date, liquidators have only recovered $255 million from the sale of the company’s overseas assets. However, creditors’ claims amount to $45 billion.

The collapse of Evergrande, once a symbol of China’s economic miracle, marks the end of the real estate sector’s “golden age”.

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