A tumultuous chapter closes as Evergrande is officially delisted from Hong Kong’s bourse

25 August 2025

File Photo: An aerial view of an unfinished residential development by China Evergrande Group in the outskirts of Shijiazhuang, Hebei province, China February 1, 2024. REUTERS/Tingshu Wang/File Photo

In a somber final act that brought an end to years of financial turmoil, China Evergrande Group has been officially delisted from the Hong Kong Stock Exchange on August 25, 2025 a striking conclusion to the saga of one of the world’s most indebted developers. Once China's top-selling property developer and valued at nearly HK$399 billion in its prime, Evergrande’s decline unfolded into a spiral of massive debt, halted construction, legal duels, and public anxiety that mirrored the broader property sector collapse.

The slide began in earnest in mid‑2021, when authorities signaled alarm about Evergrande’s rising financial risks and its inability to meet debt obligations. A wave of missed offshore bond payments, rampant warnings and eventual restructuring talks failed to stabilize the company’s sinking ship. Auditors resigned amid disputes over accounting irregularities, assets were seized, and construction on countless projects halted, laying bare the growing instability

By January 2024, the situation had deteriorated to the point where a Hong Kong court ordered Evergrande’s liquidation, and its shares were suspended from trading beginning an 18‑month freeze that preceded the ultimate delisting. Meanwhile, liquidators sold just US$255 million in assets despite creditor claims totaling US$45 billion, a downward spiral of unrealized recoveries and creditor losses.

At its 2009 listing, Evergrande was widely celebrated as a symbol of China’s booming real estate industry, and by 2017 its valuation reflected its dominance. Within a few years, however, unchecked expansion compounded by new regulatory pressure most notably Beijing’s “three red lines” policy limiting developer borrowing upended its ascent and exposed structural vulnerabilities in the era of debt‑fueled growth.

Evergrande’s downfall is what many analysts now see as emblematic of China’s broader real estate crisis a sobering tale of how leverage cycles can unwind when regulatory, structural, and market dynamics collide. The developer’s collapse weighs heavily on household and investor confidence, with ripple effects across housing demand, construction activity, and steel consumption. While local officials and authorities have taken targeted actions to shore up unfinished projects and ease financing conditions in some regions, the macro health of China’s property sector remains fragile.

Ultimately the delisting of Evergrande closes a storied and painful chapter in Hong Kong’s financial history. From soaring heights to a final exit marked by massive debt, failed restructuring efforts, and poor asset recovery, the firm’s trajectory is a cautionary tale about unchecked expansion and the limits of market exuberance. As the real estate sector attempts to recalibrate, investors and regulators alike are reckoning with the long shadow cast by this collapse—and the lessons for future stability remain ever urgent.