Hong Kong court orders liquidation of Evergrande Group, Chinese media reports
A Hong Kong court has ordered the liquidation of Evergrande Group, the most indebted real estate developer in the world, according to Chinese media. The decision comes after the embattled Chinese property giant and its foreign creditors failed to reach an agreement on how to restructure the company’s massive debt.
The court will hold another hearing in the afternoon to “regulate the order,” which could lead to the appointment of a liquidator for Evergrande. The developer, based in Shenzhen, has been a significant example of the Chinese real estate crisis since 2021, with total liabilities of more than US$328 billion at the end of June last year. Last September, its founder and president Xu Jiayin was named as a suspect in “crimes” and detained by police.
Evergrande, once China’s second largest real estate developer, defaulted on its financial obligations to its creditors in late 2021, triggering a crisis in the real estate sector that continues to weigh on the broader economy. A former Chinese official claimed last year that China has enough empty properties to house more than its entire population of 1.4 billion.
— Lucas Lilieholm contributed reporting.