China Evergrande’s Fall Marks the End of a Real Estate Giant

China Evergrande, once a symbol of China's booming economy and rapid urban growth, is set to be removed from the Hong Kong Stock Exchange this Monday, marking a quiet end to its public trading.

Since its initial public offering in Hong Kong 16 years ago, Evergrande had surged as one of the fastest expanding property developers amid China's investor optimism. However, it will ultimately be remembered as one of the most heavily indebted firms globally, whose downfall nearly destabilized China’s financial framework.

The company challenged Beijing’s traditional stance that its largest enterprises are 'too big to fail,' revealing limits to the government’s tolerance for excessive corporate debt. Evergrande’s 2021 collapse, burdened by debts exceeding $300 billion, highlighted deep vulnerabilities in China’s economy, especially its reliance on real estate as a growth engine.

What remains is a vast portfolio of unfinished projects—approximately 1,300 real estate developments spread across over 280 cities—and thousands of homebuyers still waiting to receive their properties. Additionally, a lengthy queue of creditors, including domestic suppliers and international investors, continue to seek repayment.

In a ruling last year, a Hong Kong court mandated the dismantling of Evergrande and appointed Alvarez & Marsal, a restructuring firm known for handling high-profile bankruptcies, to oversee the process. After eighteen months, the liquidators have made modest progress in delivering partial recoveries to overseas creditors.