The bankrupt Chinese property development giant Evergrande was delisted from the Hong Kong Stock Exchange earlier this month after witnessing a market valuation of more than $50 billion evaporate in scandal.
Hong Kong Exchanges and Clearing, the exchange’s holding company, announced the delisting on Friday.
Evergrande went bankrupt in 2022, which helped trigger a property crisis across China.
Chinese regulators accused the company’s founder and chairman, Hui Ka Yan, of exaggerating revenues by $78 billion prior to the bankruptcy, the BBC reports. Last year, Hui was fined $6.5 million and received a lifetime ban from China’s capital market.
Evergrande relied on $300 billion worth of loans and began to crumble after the Chinese government implemented borrowing restrictions on large developers, forcing the company to start selling off its properties at discounted rates, according to the BBC. The firm could not pay its overseas debts and reportedly still owes $45 billion to creditors.
Dan Wang, the China director at the political risk consultancy Eurasia Group, tells the BBC that “there is no coming back” from the delisting, which she says is “symbolic” but also “a milestone” for the country.
“The property slump has been the biggest drag on the economy, and the ultimate reason why consumption is suppressed.”
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post China’s Once Biggest Property Developer Delisted After $50,000,000,000 Market Cap Vanishes appeared first on The Daily Hodl.
