China Evergrande Group A Hong Kong court has ordered the scrapping of a surprise legal code for the world’s most indebted property developer.
There may be a change in judge, management and some issues to be addressed linda chan Said in the city high court on Monday morning.
Monday’s decision cemented the homebuilder, with liabilities of 2.39 trillion yuan ($333 billion), as the most prominent symbol yet of China’s real estate crisis, which has hammered economic growth and hurt consumer confidence. . The order is also likely to send ripples through China’s financial system at a time when policymakers are trying to stem a stock market slide.
Evergrande, which first defaulted on dollar bonds in December 2021, was the country’s biggest builder by sales for some time last decade. The petition for liquidation was filed in June 2022 by Top Shine Global Limited of Intershore Consult (Samoa) Limited, a strategic investor in the homebuilder’s online sales platform.
Trading in Evergrande shares was suspended on Monday morning after the stock dropped 21%, leaving its market value at just HK$2.15 billion ($275 million).
Judge Chan, who has presided over several developer hearings and ordered the liquidation of one last year, will hold a hearing on the possible regulation order at 2:30 pm on Monday, according to information on the city’s judiciary website. Such orders mean that the court will regulate the winding up process, potentially including the appointment of a liquidator.
But the liquidator may face a tougher process in dealing with Chinese developers. Most Evergrande projects are operated by local entities, which may be difficult for an offshore liquidator to seize. And construction work, housing delivery and other activities will likely continue in mainland China until the process begins.
The property market continues to slide, even as China has introduced a number of new measures to stem falling prices and sluggish demand.
There may be a change in judge, management and some issues to be addressed linda chan Said in the city high court on Monday morning.
Monday’s decision cemented the homebuilder, with liabilities of 2.39 trillion yuan ($333 billion), as the most prominent symbol yet of China’s real estate crisis, which has hammered economic growth and hurt consumer confidence. . The order is also likely to send ripples through China’s financial system at a time when policymakers are trying to stem a stock market slide.
Evergrande, which first defaulted on dollar bonds in December 2021, was the country’s biggest builder by sales for some time last decade. The petition for liquidation was filed in June 2022 by Top Shine Global Limited of Intershore Consult (Samoa) Limited, a strategic investor in the homebuilder’s online sales platform.
Trading in Evergrande shares was suspended on Monday morning after the stock dropped 21%, leaving its market value at just HK$2.15 billion ($275 million).
Judge Chan, who has presided over several developer hearings and ordered the liquidation of one last year, will hold a hearing on the possible regulation order at 2:30 pm on Monday, according to information on the city’s judiciary website. Such orders mean that the court will regulate the winding up process, potentially including the appointment of a liquidator.
But the liquidator may face a tougher process in dealing with Chinese developers. Most Evergrande projects are operated by local entities, which may be difficult for an offshore liquidator to seize. And construction work, housing delivery and other activities will likely continue in mainland China until the process begins.
The property market continues to slide, even as China has introduced a number of new measures to stem falling prices and sluggish demand.
