Chinese conglomerate Evergrande Group to withdraw from stock exchange in Hong Kong
In a significant turn of events, China Evergrande Group, once China's biggest real estate firm, is currently undergoing liquidation under court-appointed liquidators [1][2]. This follows a series of failed debt restructuring attempts, leaving creditors and stakeholders with a long and uncertain recovery process ahead.
At the time of share trading suspension, Xu Jiayin, the founder of China Evergrande Group, owned a roughly 60% stake in the company. However, as of August 2025, the company's market value has significantly shrunk, with an estimated worth of around US$274 million [6].
The debt pile at Evergrande is massive, estimated at around $45 billion [1][2]. Asset recovery has been modest compared to the debt size, with the liquidators managing to recover approximately $255 million so far [1]. This is complicated by complex ownership and legal jurisdiction issues, with the liquidators facing major hurdles in controlling mainland China assets, which follow separate bankruptcy processes [1][2].
The liquidators have assumed control of more than 100 companies within the China Evergrande Group [8]. Despite acknowledging the unlikelihood of a holistic restructuring, they remain open to credible possibilities if they arise [1][2]. However, no detailed public updates exist on lawsuits against PwC and its mainland Chinese arm connected to Evergrande, with investigations ongoing but details undisclosed [2].
Evergrande defaulted in 2021 and became emblematic of the years-long crisis in China's property market. The Hong Kong bourse's listing committee has decided to cancel Evergrande's listing, and the company is due to be delisted from the Hong Kong Stock Exchange by late August 2025 after failing to meet resumption guidelines and restructuring milestones [2][3][4][5].
Kristy Hung, an analyst at Bloomberg Intelligence, has stated that whether or not there's a delisting, Evergrande's shareholders will likely have to prepare for near-total loss [7]. The developer's liquidation and substantial claims from creditors who are ahead in the order suggest equity holders face material risk of getting nothing [7].
The claims' discovery exercise conducted by the liquidators resulted in 187 proofs of debt being submitted, totaling approximately HK$350 billion in aggregate [3]. Evergrande was worth more than US$50 billion at its peak, but its debt load is now bigger than the previously estimated US$27.5 billion [4].
In summary, Evergrande's liquidation paints a bleak picture for creditors and stakeholders, with a long, painful recovery process ahead and uncertain outcomes for litigation linked to audit or advisory firms involved with Evergrande. The current status and future prospects of lawsuits against PwC and its mainland Chinese arm remain unclear based on available data.
- The liquidation of China Evergrande Group, once a major player in the real estate industry in China, has left investors exposed to potential losses, as the company's market value has shrunk significantly since Xu Jiayin's ownership, down to an estimated US$274 million as of August 2025.
- The real-estate giant's debt load is now larger than previously estimated, standing at around $45 billion, and asset recovery efforts have so far been modest, with only around $255 million recovered.
- The complex ownership and legal jurisdiction issues, coupled with separate bankruptcy processes in mainland China, make it difficult for the court-appointed liquidators to manage and control all assets within the China Evergrande Group.
- With Evergrande's delisting from the Hong Kong Stock Exchange imminent and the company's substantial debts, Bloomberg Intelligence analyst Kristy Hung has warned that shareholders are likely to face near-total losses, as equity holders face material risk of getting nothing during the lengthy recovery process.
