Embattled Evergrande to be removed from Hong Kong stock exchange by China
Evergrande's Delisting from Hong Kong Stock Exchange Finalised
After years of crisis, Evergrande Group, the once prominent Chinese real estate firm, is set to officially delist from the Hong Kong Stock Exchange on August 25, 2025. This follows a winding-up order issued by the Hong Kong High Court in January 2024, appointing liquidators to oversee the company's asset management and debt resolution.
The liquidators, Edward Middleton and Tiffany Wong, have reported that Evergrande's debt load is larger than the previously estimated $27.5 billion. In their progress report, they have revealed that Evergrande's debt claims have reached approximately HK$350 billion ($45 billion), a figure that is not final. As of July 31, 2025, 187 proofs of debt have been submitted, amounting to the same approximate figure.
The crisis in Evergrande has become emblematic of a years-long crisis in China's property market. The world's second-largest economy has been affected by the crisis, and the delisting marks a definitive end to Evergrande's status as a listed company, accelerating risk resolution in the market.
Evergrande has been deep in debt since at least 2021, with total liabilities previously reported around 2.44 trillion yuan and an asset-liability ratio exceeding 130% as of 2022. The company defaulted in 2021, and since then, senior executives, including founder Xu Jiayin, have faced asset freezes and regulatory sanctions, with Xu banned from market participation for life. The China Securities Regulatory Commission fined Evergrande Real Estate 4.175 billion yuan in May 2024.
The process highlights the broader ongoing crisis in China’s real estate sector, reflecting the protracted efforts to resolve Evergrande’s vast debts and the structural challenges in the market. The delisting follows the decision by the Hong Kong Stock Exchange's listing committee to cancel Evergrande's listing.
In a recent development, the liquidators have filed a lawsuit against PwC and its mainland Chinese arm for their role in auditing Evergrande. The legal proceedings against the auditing firm are ongoing.
| Aspect | Status as of July-August 2025 | |----------------------------|---------------------------------------------------------| | Debt Status | Liabilities over 2.44 trillion yuan, high leverage | | Legal Proceedings | Court-ordered liquidation since Jan 2024, asset freeze | | Management | Alvarez & Marsal appointed liquidators | | Regulatory Action | CN regulator fined Evergrande; founder banned | | Stock Market Status | Scheduled delisting Aug 25, 2025 from HKEX | | Market Impact | Reflects deepened real estate crisis and risk resolution| | Legal Proceedings (Update) | Liquidators have filed a lawsuit against PwC and its mainland Chinese arm for their role in auditing Evergrande. |
The delisting of Evergrande, a prominent Chinese real estate firm, from the Hong Kong Stock Exchange on August 25, 2025, is a definitive end to its status as a listed company and accelerates risk resolution in the world's second-largest economy. The crisis in Evergrande's business, characterized by a debt load exceeding 2.44 trillion yuan and an asset-liability ratio over 130%, reflects a broader ongoing crisis in China's real estate sector. The legal proceedings against the auditing firm, PwC and its mainland Chinese arm, are ongoing, further highlighting the financial complexities and the need for transparency in the industry.
