Jan 28, 2024 - Business

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

Rebecca Falconer

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

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