Market history · Credit ·
A Hong Kong court orders Evergrande to be wound up
On 29 January 2024 a Hong Kong court, Judge Linda Chan presiding, ordered the liquidation of China Evergrande. The developer had about $300 billion of debts, and the court found it had no workable plan to restructure them. The petition had been filed by a creditor, Top Shine, in 2022 and the case ran for roughly 18 months, with a brief reprieve in December 2023.
Evergrande's shares fell more than 20% before trading was halted. Al Jazeera noted that the future of its assets was uncertain: most are in mainland China, where it was unclear whether courts would let liquidators take control, and the ranking of offshore bondholders was unclear.
The order was a milestone in a property downturn that had started with Evergrande's troubles in 2021 and spread to other developers.
The takeaway
Cross-border insolvencies are slow and uncertain. Where the assets are and which court has authority can matter more than the headline claim.
Sources
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