Histopedia

In the world of Chinese real estate, few names shone as brightly as Evergrande. Once China’s largest property developer, Evergrande’s meteoric rise was fueled by $300 billion in borrowed money, making it the world’s most indebted property developer. However, its spectacular collapse has sent shockwaves through the global economy, leaving creditors, investors, and homebuyers in a state of uncertainty.

Evergrande’s journey began with a bang, reaching a peak valuation of $51 billion in 2017. Its founder, Hui Ka Yan, rose to become Asia’s wealthiest person, with an estimated fortune of $45 billion. However, the company’s fortunes took a drastic turn in 2020 when Beijing introduced new rules to control the amount big developers could borrow. This move, known as the “three red lines” policy, aimed to discipline overleveraged developers.

Evergrande’s debt woes began to surface as it struggled to meet interest payments and defaulted on some of its overseas debts. The company’s liabilities stood at a staggering $45 billion, with only $255 million in assets sold. In January 2024, the Hong Kong High Court ordered Evergrande to be wound up, citing its failure to present a viable restructuring plan.

On August 25, 2025, Evergrande’s shares were delisted from the Hong Kong Stock Exchange, marking a grim milestone for the company. Experts say the delisting was both inevitable and final, with no chance of a comeback. “Once delisted, there is no coming back,” said Dan Wang, China director at Eurasia Group.

Evergrande’s collapse has had far-reaching consequences for China’s economy. The property slump has been the biggest drag on the economy, suppressing consumption and leading to massive layoffs. The company’s downfall has also raised concerns about the stability of the Chinese financial system and the potential for a broader economic crisis.

Key Takeaways

• Evergrande’s Debt: $45 billion in liabilities, with only $255 million in assets sold
• Delisting: Evergrande’s shares were removed from the Hong Kong Stock Exchange on August 25, 2025
• Liquidation: The company was ordered to be wound up by the Hong Kong High Court in January 2024
• Economic Impact: Evergrande’s collapse has had significant consequences for China’s economy, including suppressed consumption and massive layoffs

As China navigates its economic challenges, the Evergrande saga serves as a cautionary tale about the dangers of debt-fueled growth and the importance of prudent financial management. The road ahead may be uncertain, but one thing is clear: Evergrande’s fall from grace will not be forgotten anytime soon.