Troubled Evergrande to withdraw from listing on Hong Kong Stock Exchange
Evergrande Group, once China's most prominent real estate firm, is on the brink of delisting from the Hong Kong Stock Exchange after years of crisis and default. As of July 31, 2025, the company remains deeply insolvent with a mounting debt burden of roughly HK$350 billion ($45 billion USD), according to a progress report filed by liquidators Edward Middleton and Tiffany Wong.
The winding-up order for Evergrande was issued by a Hong Kong court in January 2024, following the company's failure to present a viable debt restructuring plan. Since then, Evergrande's shares on the Hong Kong stock exchange have been suspended, and the company is set to be delisted on August 25, 2025, following an 18-month trading suspension-triggered "fast-track delisting" process. The liquidators have stated that Evergrande will not seek to reverse this cancellation.
The progress report indicates that the claims discovery exercise has resulted in claims of approximately HK$350 billion ($45 billion) in aggregate. As of now, 187 proofs of debt have been submitted. However, the liquidators have not provided a final figure for Evergrande's debt load.
The liquidators are actively pursuing asset realization and creditor repayments, having recovered around $167 million USD to date amid complex internal and external asset structures within the Evergrande Group. They are prioritizing the realization of assets held by Evergrande Property, the only potentially valuable listed subsidiary, and have appointed legal and financial advisors to assist in this process.
In a significant move, the liquidators have also initiated legal action against PwC and its mainland Chinese arm for their role in auditing Evergrande. The crisis in Evergrande has reverberated throughout China's property market and the world's second-largest economy. The delisting of Evergrande from the Hong Kong Stock Exchange is a significant event in this ongoing crisis.
The liquidators are making moves to recover creditors' investments, and the filing attributed to Middleton and Wong states that the debt load is bigger than the previously estimated $27.5 billion. However, this figure of $45 billion in aggregate claims is not final, according to the liquidators.
The crisis in Evergrande has been a long and arduous one, with the company defaulting in 2021. The delisting decision comes after years of crisis for Evergrande, and it marks the end of an era for one of China's largest property firms. The liquidation process is ongoing, and it remains to be seen how the situation will unfold in the coming months.
The crisis in Evergrande, once China's most prominent real estate firm, has raised concerns in the global business community, as it threatens to impact the world's second-largest economy. The delisting of Evergrande from the Hong Kong Stock Exchange, initiated after a winding-up order and an 18-month trading suspension, signifies a significant event in the industry, with the company's debt burden now estimated at approximately $45 billion USD. Financial advisors have been appointed to assist in the recovery of assets, primarily from Evergrande Property, a listed subsidiary, as the liquidators work diligently to repay creditors and realize asserts. Additionally, legal action has been initiated against PwC and its mainland Chinese arm for their role in auditing Evergrande, a move that further highlights the complexity and far-reaching implications of this business debacle.
