Core Viewpoint - China Evergrande has officially been delisted from the Hong Kong Stock Exchange after more than 18 months of suspension, marking the end of its public trading status [1][5][10]. Summary by Sections Delisting Announcement - On August 25, 2025, China Evergrande was listed as "delisted securities" on the Hong Kong Stock Exchange, confirming its delisting status [1][5]. - The company did not seek a review of the delisting decision made by the listing committee [2]. Suspension and Delisting Process - China Evergrande has been suspended since January 29, 2024, and the suspension lasted for 18 months, leading to its delisting under the "fast-track delisting" mechanism of the Hong Kong Stock Exchange [3][10]. - Prior to suspension, the stock price was at 0.163 HKD per share, with a total market capitalization of approximately 21.52 billion HKD [3][6]. Financial Background - At its peak in 2017, China Evergrande's market capitalization reached around 400 billion HKD, but by 2024, it had drastically declined due to liquidity issues [6][10]. - The company faced significant debt issues, with total liabilities exceeding 2 trillion RMB, and it struggled to manage its cash flow against this debt burden [10][11]. Legal and Regulatory Issues - The chairman of China Evergrande, Xu Jiayin, was taken into custody in September 2023 for alleged criminal activities [7]. - In May 2024, the China Securities Regulatory Commission imposed penalties on Evergrande for fraudulent bond issuance and false disclosures, resulting in fines and a lifetime ban for Xu Jiayin from the securities market [8][9]. Ongoing Liquidation Process - Despite the delisting, the liquidation process for China Evergrande will continue, with total liabilities reported at approximately 24.74 billion RMB as of June 30, 2022 [11][12]. - The liquidators have indicated that there is no clear path for restructuring, and ongoing legal actions are expected to recover potential high-value assets [12][13]. Market Impact and Future Outlook - The delisting is seen as a warning to the management regarding the slow pace of debt resolution, which has led to accumulated risks [10][13]. - Post-delisting, the company may have more flexibility in asset disposal, but the transparency and bargaining power of creditors may decrease, potentially leading to judicial liquidation processes [13].
中国恒大，正式退市！