Crisis-Stricken Chinese Property Giant Evergrande Ordered to Liquidate

A Hong Kong court has ordered the liquidation of debt-ridden Chinese property giant Evergrande, following the company’s repeated failure to restructure its debts. The firm, which is over $300bn in debt, has been a symbol of China’s real estate crisis. Evergrande’s default two years ago had a significant impact on global financial markets. The company’s executive director, Shawn Siu, described the decision as “regrettable”, but confirmed that operations would continue in mainland China. The ruling’s impact on Evergande’s home building business is currently unclear, but it is likely to further affect China’s financial markets. The case was initiated by investor Top Shine Global, who claimed Evergrande failed to honour an agreement to buy back shares. The majority of Evergrande’s debts are owed to lenders in mainland China, who have limited legal recourse. The liquidation does not necessarily mean that Evergrande will go bankrupt and cease operations.