Core Viewpoint - China Evergrande Group has been delisted from the Hong Kong Stock Exchange after failing to meet the requirements for resuming trading, marking the end of its tumultuous journey in the capital market [2][18]. Group 1: Company Overview - China Evergrande was once a leading real estate company, known for its rapid expansion and high leverage, aiming to become a global real estate giant [3][16]. - The company was listed on the Hong Kong Stock Exchange on November 5, 2009, with a closing price of HKD 4.7, becoming the largest private real estate company listed in Hong Kong at that time [16]. - The company faced significant controversies, including a liquidity crisis that began in 2021, leading to a decline in its stock price from HKD 14 to below HKD 2 within a year [17]. Group 2: Delisting Details - On August 12, 2025, the Hong Kong Stock Exchange announced the cancellation of China Evergrande's listing due to the company's inability to meet the resumption requirements [2][18]. - The last trading day for the company's shares was August 22, 2025, with the delisting effective from August 25, 2025 [2]. Group 3: Legal and Financial Issues - Following the issuance of a winding-up order by the Hong Kong High Court 18 months prior, multiple subsidiaries of China Evergrande also received winding-up orders [5]. - The liquidators have been investigating the company's affairs and have initiated legal actions against key figures, including founder Hui Ka Yan, for alleged breaches of duty related to financial statements from 2018 to 2020 [6][8]. - The liquidators are pursuing claims for approximately USD 6 billion (around RMB 43.8 billion) in dividends and compensation from Hui Ka Yan and others, with a court ruling freezing assets worth HKD 60 billion (approximately RMB 55 billion) globally [5][12].

Core Viewpoint - China Evergrande Group has been delisted from the Hong Kong Stock Exchange after failing to meet the resumption requirements set by the exchange, marking the end of its tumultuous journey in the capital market [1][20]. Group 1: Company Background and Timeline - China Evergrande was listed on the Hong Kong Stock Exchange on November 5, 2009, with a closing price of HKD 4.7, becoming the largest private real estate company listed in Hong Kong at that time [18]. - The company experienced rapid expansion and diversification under founder Xu Jiayin, venturing into various sectors including real estate, finance, and health [18][19]. - In January 2024, the Hong Kong High Court issued a winding-up order against China Evergrande, initiating a countdown to its delisting [4]. Group 2: Financial and Legal Issues - The company has faced significant financial challenges, including a liquidity crisis that began in 2021, leading to a drastic decline in stock price from HKD 14 to below HKD 2 within a year [19][20]. - Multiple subsidiaries of China Evergrande have also received winding-up orders, and the appointed liquidators are focused on investigating the company's affairs and recovering assets for creditors [7][8]. - The liquidators have filed lawsuits against Xu Jiayin and other executives for alleged breaches of duty related to financial statements from 2018 to 2020, seeking approximately USD 6 billion in claims [8][15]. Group 3: Market Impact and Future Outlook - Following a 500-day trading suspension, China Evergrande's stock resumed trading in August 2023 but quickly fell to HKD 0.16 by January 29, 2024, with a total market value of approximately HKD 21.52 billion (around RMB 19.7 billion) [20]. - The delisting decision was made official on August 12, 2025, with the last trading day set for August 22, 2025, marking a significant decline from its previous market position [1][20].

Core Viewpoint - China Evergrande Group, once a leading real estate company, is facing delisting from the Hong Kong Stock Exchange due to failure to meet the resumption guidelines set by the exchange, marking the end of its capital market journey after four years of turmoil [2][4]. Group 1: Company History and Performance - China Evergrande was listed on the Hong Kong Stock Exchange on November 5, 2009, with a closing price of HKD 4.7 per share, marking a significant entry into the capital market [14][15]. - The company rapidly expanded using a high-leverage model, becoming a major player in the real estate sector, particularly in third- and fourth-tier cities in China [16]. - In 2017, the company's market capitalization peaked at HKD 400 billion, and its founder, Xu Jiayin, became the richest person in China with a net worth of CNY 290 billion [17][19]. Group 2: Financial Troubles and Legal Issues - In January 2024, the Hong Kong High Court issued a winding-up order against China Evergrande, leading to a countdown to delisting [4]. - The company has faced multiple winding-up orders for its subsidiaries, and the appointed liquidators are focused on investigating the company's affairs and recovering assets for creditors [5][6]. - The liquidators have filed lawsuits against Xu Jiayin and other executives for alleged breaches of duty related to financial statements from 2018 to 2020, seeking approximately USD 6 billion in dividends and compensation [6][13]. Group 3: Recent Developments - As of March 2023, the liquidators have not found a restructuring plan that would allow the company to meet the resumption guidelines and resume trading [6]. - Following a 500-day suspension, China Evergrande resumed trading in August 2023, but the stock price plummeted, leading to a final delisting announcement on August 12, 2025 [20].

Core Viewpoint - China Evergrande Group has been delisted from the Hong Kong Stock Exchange after failing to meet the resumption requirements set by the exchange, marking the end of its tumultuous journey in the capital market [3][4][33]. Group 1: Company Background and History - China Evergrande was once a leading real estate company, known for its rapid expansion and ambition to become a global real estate giant [8][9]. - The company was listed on the Hong Kong Stock Exchange on November 5, 2009, with a closing price of HKD 4.7, achieving a market capitalization of over HKD 700 billion [22]. - The company adopted a high-leverage, high-turnover business model, rapidly increasing its land reserves, especially in lower-tier cities [24]. Group 2: Financial Challenges and Legal Issues - In January 2024, China Evergrande was officially placed under liquidation by the Hong Kong High Court, initiating a countdown to delisting [7]. - The company has faced significant financial difficulties, including a liquidity crisis that began in 2021, leading to a drastic decline in stock price from HKD 14 to below HKD 2 within a year [30]. - The liquidators have been pursuing legal action against former executives for alleged mismanagement and financial misconduct, seeking approximately USD 6 billion (around RMB 43.8 billion) in claims [20][12]. Group 3: Delisting and Future Outlook - The last trading day for China Evergrande shares was set for August 22, 2025, with delisting effective from August 25, 2025 [4]. - Despite attempts to restructure and recover value for creditors, the company has not made significant progress in its overseas debt restructuring [11]. - Following its brief resumption of trading in 2023, the stock price plummeted to HKD 0.16, with a total market value of approximately HKD 21.52 billion [32].

Group 1 - The real estate industry is overly reliant on debt-driven growth, which is unsustainable, and future financing models need to balance risks and returns while the pre-sale system requires urgent adjustment [1][23] - Real estate companies have expanded their scale through leverage, leading to hidden crisis risks, as the industry is capital-intensive and requires significant funding at various project stages [3][4] - Since 2018, a wave of listings has allowed real estate companies to broaden financing channels and improve their financial situations, with many companies seeing a significant reduction in net debt ratios post-listing [5][7] Group 2 - The reliance on cooperative development has increased from 2017 to 2021, leading to rising financial risks and a decline in financial transparency, as companies often use related party transactions to manage financing [11][15] - The financial leverage of real estate companies has shifted from direct debt to cooperative leverage, complicating debt structures and increasing hidden liabilities [12][15] - The liquidity crisis has been exacerbated by the aggressive issuance of offshore bonds, with some companies facing significant debt defaults [9][19] Group 3 - The high leverage and rapid turnover model have been identified as primary causes for the downfall of major companies like Taihe Group, China Evergrande, and Huaxia Happiness, reflecting the unsustainable nature of the industry's debt-driven growth [19][22] - The crisis has spread to the entire real estate sector and its supply chain, affecting even stable companies, necessitating a new financing model that aligns risks and returns [23][24] - The pre-sale system in China needs reform to prevent excessive credit expansion, drawing lessons from successful models in places like Hong Kong and Singapore [24][26]