Beijing , China– August 26, 2025

A Symbol of Crisis Delisted as Evergrande Leaves the Market

The long and tumultuous saga of China’s property crisis has reached a symbolic conclusion with the official delisting of real estate giant Evergrande from the Hong Kong stock exchange. 

The move, which follows years of debt defaults and a court-ordered liquidation, serves as a stark reminder of the deep-seated issues that continue to plague China’s once-booming real estate sector and the wider economy.

Evergrande, once a titan of the property world with a peak market valuation of over $50 billion, was removed from the exchange after failing to meet a deadline to resume trading. Trading in the company’s shares has been suspended since January 2024, when a Hong Kong court issued a winding-up order after Evergrande failed to present a viable plan to restructure its colossal debt, which at one point exceeded $300 billion. The delisting is the final act in a painful process that has seen the company’s value plummet by more than 99%.

Headlines of the Report

 * Symbolic Delisting: The removal of Evergrande from the Hong Kong stock exchange marks a watershed moment, symbolizing the formal collapse of a firm that was central to China’s decades-long property boom.

 * Failure to Restructure: The delisting follows a court ruling that Evergrande had failed to present a viable restructuring plan for its massive debt, a key reason for the liquidation order.

 * Uncertainty for Creditors: The delisting raises further questions for creditors, as liquidators are now tasked with the difficult process of selling off the company’s assets to repay a portion of its debts, with offshore creditors facing thin recoveries.

 * Wider Economic Impact: The property crisis, of which Evergrande is a prime example, has had a ripple effect throughout China’s economy, contributing to a slowdown in growth and hitting consumer confidence.

 * Government’s Role: The delisting underscores the Chinese government’s “controlled burn” approach to the crisis, opting to let highly indebted developers fail rather than orchestrating a full-scale bailout.

The fall of Evergrande is not an isolated incident. Its demise is a direct result of Beijing’s “three red lines” policy, introduced in 2020 to curb excessive borrowing and deleverage the property sector. This policy, designed to steer the economy away from its over-reliance on real estate, has led to a domino effect of defaults among dozens of other developers, including Country Garden and Kaisa Group.

The crisis has had a profound impact on the Chinese economy, which has long relied on real estate for a significant portion of its GDP. The downturn has left millions of homebuyers with unfinished apartments, devastated businesses in related sectors, and shaken the confidence of ordinary Chinese families who had invested a large portion of their wealth in property. While the government has taken some steps to stabilize the market, such as easing mortgage rules and encouraging local governments to purchase excess inventory, the overall outlook for the sector remains uncertain.

With Evergrande now formally off the market, the focus shifts to the ongoing liquidation process and the fate of its creditors and investors. The delisting is a clear signal that the era of debt-fueled, runaway growth in China’s property market is over. For international observers, it serves as a powerful cautionary tale about the risks inherent in a system where real estate became a dominant engine of economic growth, and a test of China’s ability to manage a “controlled landing” rather than a catastrophic crash.