NANJING, CHINA – AUGUST 18, 2023 – Aerial photo shows a residential area of Evergrande in Nanjing, East China’s Jiangsu province, Aug 18, 2023. (Photo by Costfoto/NurPhoto via Getty Images)
Shares of China Evergrande were briefly halted after plunging over 20% in early trading on Monday after a Hong Kong court ruled to liquidate the embattled property developer.
It comes against the backdrop of a spiraling debt crisis in the country.
China Evergrande, which was once one of the country’s largest property developers, has in the last few years been enveloped in Beijing’s debt crisis.
The Wall Street Journal earlier reported that Evergrande’s overseas creditors failed to reach an 11th-hour deal this weekend to restructure, which could mean an imminent liquidation for the real estate developer.
Evergrande is the world’s most indebted property developer, which defaulted in 2021 and announced an offshore debt restructuring program in March last year.
Policymakers in China have been scrambling to stem the debt crisis in the beleaguered property sector.
This is developing news. Please check back for updates.