Evergrande Gone: Beijing\’s Real Estate Giant Falls from Hong Kong Exchange

Evergrande: From Billion-Dollar Dream to Hong Kong Delist Frenzy

Once the splashiest realtor in China, Evergrande made waves with a market cap that topped $50 billion—big enough to brag about at every boardroom lunch. But by 2021 it hit rock bottom, defaulting on a mountain of debt that left creditors scrambling and regulators in a tizzy.

The ‘I‑just‑forgot‑to‑pay’ Moment

• 2021 Deadline Missed: The company failed to clear its debts by the July cut‑off, sparking a cascade of red papers.
• Hong Kong Swing and Slide: After a year on the sidelines, the stock exchange finally pulled the plug on Evergrande’s listing.
• Winding‑Up Order: A Hong Kong court in January 2024 slapped a liquidation order on the developer, calling out its inability to craft a viable repayment plan.

Liquidators at the Helm

Enter the liquidators—Edward Middleton and Tiffany Wong—who took the reins of more than 100 subsidiaries. Their mission is simple yet Herculean: sift through a debt pool that’s now been pegged at over $27.5 billion, bigger than the original estimate. They’ve even taken legal heat to PwC (and its mainland arm) over audit oversight.

China’s Housing Hangover

• Urban Boom Back‑Burns: After a 20‑year construction fever, the 2020 “tight‑rope” policy slashed excessive borrowing, rattling the market.
• Market Slump: July data show home prices in 70 Chinese cities taking a dip—less of a bounce and more of a bruise.
• The Bigger Picture: Evergrande’s drama resonates with other giants like Country Garden and Vanke, flagging a systemic health check for the world’s second‑largest economy.

Whispers of a New Growth Playbook

Economists are nudging for a shift: move the focus from heavy investment and infrastructure to domestic consumption. The real estate crash only sharpens that call.

What’s Next? The Takeaway

Evergrande’s collapse isn’t just a corporate tantrum—it’s a cautionary tale about runaway debt, regulatory gaps, and the eventual need to revise China’s growth engine. What’s clear: the ghost of a $50 billion empire still haunts the market, and the stakeholders are still in a frantic scavenger hunt for any remaining treasure.