Hong Kong court orders liquidation of crisis-hit Chinese property giant Evergrande

The firm has been the poster child of China's real-estate crisis with more than $300 billion of debt, the report said

January 29, 2024

Evergrande set for liquidation as China property crisis drags on

A Hong Kong court has ordered the liquidation of battered Chinese property giant Evergrande, dealing another blow to the firm that has become the symbol of a property crisis that has sent shivers through the economy, a media report said.

Judge Linda Chan said “enough is enough” after the troubled developer repeatedly failed to come up with a plan to restructure its debts, BBC reported.

The firm has been the poster child of China’s real-estate crisis with more than $300 billion of debt, the report said.

When Evergrande defaulted two years ago, it sent shockwaves through global financial markets.

Evergrande’s Executive Director, Shawn Siu, described the decision as “regrettable”, but said the company would continue to operate in mainland China.

The firm’s Hong Kong arm was independent from its mainland business, he said in a statement, BBC reported.

While any potential impact of the ruling on Evergrande’s home-building business is currently unclear, the crisis at the company has already left many home buyers waiting for their new properties, BBC reported.

Beijing has previously sought to temper public concern about the property crisis as people have taken to Chinese social media sites such as Weibo to share their frustrations about developers like Evergrande.

[With Inputs from IANS]

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