"Shares in China Evergrande were removed from the Hong Kong Stock Exchange on Monday, marking another step in the retreat of the giant real estate developer whose downfall contributed to a prolonged crisis in China's property market. Evergrande's creditors are still working to wind up debts that amounted to more than $340 billion. Once China's second-largest developer, it ran into trouble when Chinese regulators cracked down several years ago on what they deemed to be excess borrowing by developers."
"Evergrande's role in China's property crisis After years of warnings that led to global rating agencies cutting the Chinese government's credit rating in 2017, the ruling communist party cracked down on real estate debt in 2020. It imposed controls known as "three red lines" that prohibited heavily indebted developers like Evergrande from borrowing more to pay off bonds and bank loans as they matured."
Evergrande's shares were delisted from the Hong Kong Stock Exchange after trading suspension and a Hong Kong court ordered liquidation when no viable debt restructuring plan was produced. The company last traded on January 29, 2024, and exchange rules allow cancellation after 18 months of suspension. Evergrande accrued more than $340 billion in debts, and creditors continue wind-down efforts. Beijing's 2020 crackdown on real estate debt imposed "three red lines" that restricted further borrowing by highly leveraged developers, triggering widespread defaults and a prolonged downturn in China's property market that has weighed on the broader economy.
Read at www.npr.org
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