Evergrande, the real estate developer that has become a symbol of China's property crisis, has been delisted a year and a half after receiving a liquidation order in January last year.
According to Bloomberg News and other media outlets on August 12, China Evergrande, the Hong Kong-listed entity of Evergrande, announced in a notice that it had received a letter from the Hong Kong Stock Exchange on August 8 informing the company of the decision to cancel its listing status.
Evergrande explained that it failed to meet any of the requirements set by the exchange for the resumption of trading, and since trading in its shares was not resumed before July 28, its listing status will be canceled as of August 25.
Evergrande, which was listed on the Hong Kong Stock Exchange in 2009, once experienced explosive growth that propelled its founder and chairman, Xu Jiayin, to become the second-richest person in Asia. However, after the Chinese government began implementing property regulations in 2020, the company was driven into a liquidity crisis. By the end of 2021, Evergrande defaulted on more than $300 billion (approximately 400 trillion won) in debt.
In January last year, a Hong Kong court issued a liquidation order against Evergrande, resulting in the suspension of its share trading on the Hong Kong Stock Exchange. The exchange allows for delisting if trading has been suspended for more than 18 months.
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