Jan 28, 2024 - Business

China's Evergrande ordered to liquidate, with debts of $300 billion

 The Evergrande Group headquarters building in Shenzhen is pictured on January 11, 2022 in Shenzhen, Guangdong Province of China.

The Evergrande Group headquarters building in Shenzhen, China. Photo: Liang Xiashun/VCG via Getty Images

China's embattled property firm Evergrande was ordered by a Hong Kong court to liquidate on Monday morning local time.

Why it matters: The slow-moving problems of Evergrande, once China's largest developer, underscore the country's deepening economic woes, which have sent the stock market swooning.

  • Evergrande's fate could cause further distress in the Chinese property market amid a real estate sales slump and bleed into other economic areas — potentially negatively impacting global markets, per Axios' Kate Marino.

Driving the news: Evergrande reported over $300 billion in liabilities in a move that had global market repercussions.

  • "The hearing has lasted for one and a half years, and the company still has not been able to bring forward a concrete restructuring proposal," Justice Linda Chan said in her winding-up order, per the South China Morning Post.
  • "I think it is the time for the court to say enough is enough."

What's next: A liquidator will be appointed.

Go deeper: China's property market crisis, in one chart

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