The Chinese property giant was deleted after a stunning fall

The shares of the giant Evergrande company from Evergrande were removed from the Hong Kong stock market on Monday after more than a decade and a half of trading.

It represents a dark milestone for one day the largest real estate company in China, where the stock market evaluation is more than $ 50 billion (37.1 billion pounds). This was before its amazing collapse under the weight of the huge debts that led to the height of the meteorite.

Experts say that the deletion was inevitable and final.

“Once it is deleted, there is no return,” says Dan Wang, China’s director of the Eurasia Group.

Evergrande is now known for its role in a crisis that has been dragged for years on the second largest economy in the world.

Just a few years ago, the Evergrande group was a bright example of the economic miracle in China.

Its founder and president, Hui Ka Yan, rose from modest beginnings in rural areas in China, topping the Forbes list, the richest people in Asia in 2017.

His wealth has since decreased from an estimated $ 45 billion in 2017 to less than a billion dollars, his fall from extraordinary grace like his company.

In March 2024, Mr. Hui was fined 6.5 million dollars and banned from the Chinese capital market for the life of his company Exaggeration in its revenues by $ 78 billion.

Candidates also explore whether they can recover criticism for creditors from Mr. HUI.

At the time of its collapse, Evergrande had about 1,300 projects under development in 280 cities across China.

The sprawling Empire also included an electric car maker and a football team in China, Guangzhou FC, which was Ravage Earlier this year after failing to pay enough debt.

Evergrande was built on $ 300 billion (222 billion pounds) of borrowed funds, and was obtained by an unenviable title for the real estate developer in the world.

The rot brought after Beijing brought new rules in 2020 to control the amount that the great developers can borrow.

The new measures Evergrande prompted the provision of real estate with great discounts to ensure the arrival of funds to maintain business.

It is struggling to meet interest payments, the company soon failed to do some of its external debts.

After years of legal quarrels, Hong Kong Supreme Court ordered that the company end in January 2024.

Evergrande shares have been under the threat of deletion since then because they were suspended from trading after the court order.

By this point, the crisis that wipes the company has wiped more than 99 % of the stock market evaluation.

The liquidation order came after the company was unable to submit a practical plan to deliver billions of dollars from external obligations.

Earlier this month, the candidates revealed that Evergrande’s debts are currently reaching 45 billion dollars and that it has so far sold $ 255 million of assets. They also said they believed that the comprehensive reform of the company “will prove a long time.”

“Delete is definitely symbolic, but it is a teacher,” says Ms. Wang.

Professor Xiao Chiao of Duke University says that all that remains is any creditors who are paid and how much they can get in the bankruptcy process.

The next liquidation session is scheduled to be held in September.

China faces a number of major problems, including US President Donald Trump’s tariffThe debts of the high local government, Poor consumer spendingand Unemployment And the aging of the population.

But experts say that the collapse of Evergrande, along with the serious problems faced by other developers, has hit the country stronger.

“The decline in the property was the biggest traction in the economy, and the final reason for the suppression of consumption,” says Ms. Wang.

This is a special problem because the industry represents about a third of the Chinese economy and was a major source of income for local governments.

“I don’t think China has found an applicable alternative to support its economy on a similar scale,” says Professor Qiao.

Jackson Chan from the financial market research platform says: The property crisis has led to “massive workers” by great developers.

He adds that many of the real estate industry employees who have kept their jobs have seen significant wages.

The crisis also has a major impact on many families, as it tends to put their savings in property.

Alicia Garcia Herro, chief economist in Asia and the Pacific in the French Bank of Natics, says that housing prices have decreased by at least 30 %, as many Chinese families have witnessed a decrease in the value of their savings.

This means that they are less likely to spend and invest, she adds.

In response, Beijing announced a set of initiatives aimed at reviving the housing market, stimulating consumer spending and strengthening the wider economy.

It ranges from measures to help new homeowners and support the stock market for incentives to buy electric cars and home commodities.

Despite hundreds of billions of dollars that Beijing poured into the economy, China’s growth that was previously black has ended to “about 5 %”.

While most Western countries will be more than happy, they are slow for a country that has witnessed more than 10 % annually since 2010.

In short, may not.

Even as Evergrande continues to get headlines, many other Chinese real estate companies are still facing great challenges.

Earlier this month, China South City Holdings was handed over an interested in the Hong Kong Supreme Court, making it the largest developer to legitimize since Evergrande.

Meanwhile, the giant real estate park in the field of real estate is still trying to secure a deal with its creditors to delete more than $ 14 billion in outstanding foreign debts.

After a series of postponements, the next Supreme Court’s liquidation session in Hong Kong is scheduled to be held in January 2026.

“The entire real estate sector was in trouble. More Chinese real estate companies will collapse,” says Professor Qiao.

While the Chinese government has taken a number of measures to help strengthen the real estate market and support the economy as a whole, it did not pass to save the developers directly.

“We believe that the bottom (reached) should be in a slow recovery state. However, we may not expect the recovery to be very strong.”

Goldman Sachs giant in Wall Street in June that real estate prices in China will continue to decrease until 2027.

Mrs. Wang agrees, and the real estate market in China “will reach the bottom” about two years when the demand is finally attached to the offer.

But Mrs. Garcia Hero puts it in blatant terms: “There is no real light at the end of the tunnel.”

Mrs. Wang adds that Beijing has sent a “clear message about her intention to save the housing sector.”

The Chinese government has been keen to avoid the type of measures that could encourage more risky behavior by making a very city already.

And “and” In The Boom Times, the real estate market was a major engine for economic growth in China, and the priorities of the ruling Communist Party were now elsewhere.

President Xi Jinping focuses on high -tech industries such as renewable energy, electric cars and robots.

“China is a deep move to a new era of development.”