Evergrande to delist from HK bourse on Aug 25

Property developer China Evergrande Group announced on Tuesday that the Hong Kong stock exchange has decided to delist it, effective Aug 25, and the company confirmed it will not apply for a review.

The announcement came after a letter was received from the bourse operator on Friday, stating that Evergrande, which is already in the process of liquidation, "failed to fulfil any of the requirements" for resumption of trade.

The final listing day will be Aug 22, with the delisting taking effect three days later, bringing an end to its 16-year run as a Hong Kong-listed entity.

Trading of the company's shares has been halted since Jan 29, 2024, the same day the Hong Kong High Court ordered its liquidation. Under the exchange's rules, a company that remains suspended for 18 consecutive months faces removal.

Following the delisting, the appointed liquidators plan to give notice of material developments in the company's liquidation, as appropriate, by publishing them on the liquidation information website.

The liquidators on Tuesday released the first progress report covering the past 18 months, which showed that they have taken control of more than 100 entities within the group, with assets under their direct management valued at around HK$27 billion ($3.5 billion).

In a separate development, property firm China South City Holdings Ltd was ordered into liquidation by the Hong Kong High Court on Monday after failing to secure enough creditor support for its restructuring proposal. Trading in its shares was suspended the same day.

The liquidation petition was filed in January by creditor Citicorp International, citing the company's failure to repay $306 million in debt that reached maturity last April.

As of the end of 2024, China South City reported total liabilities of HK$60.9 billion, along with a net loss of nearly HK$9 billion for the year.

irisli@chinadailyhk.com