China Evergrande Group, one of the nation’s largest real estate developers, has officially delisted from the Hong Kong Stock Exchange. That delisting happened Monday, news recently reported in a late-breaking update that appeared just 57 minutes ago. This huge move underscores the monetary crisis the company is facing right now. It has unexpectedly become the biggest player in China’s real estate crisis.
Technically speaking, the delisting of Evergrande, represented by stock quotes Z2-CN and 2007-HK, is a pivotal point for the company. It’s been a dire cycle of worsening debt and plummeting revenues. The crisis of mounting financial pressures is increasing at an alarming pace. China’s decision to delist the stocks from public trading underlines the alarm in China’s real estate industry.
Hosted by Emily Tan, The China Connection produced an episode on Monday laying out these new developments. The show, broadcasted Monday to Friday from 10:00 to 11:00 SIN/HK (0400 to 05:00 CET), provides timely updates and discussions on current events affecting China. A video titled “From boom to bust: China Evergrande delists from Hong Kong Stock Exchange” is now available and offers further insights into the company’s financial challenges.
The delisting of China Evergrande from the Hong Kong Stock Exchange emphasizes the broader issues plaguing China’s real estate market. The company’s more than $300 billion in liabilities is an insurmountable load. This scenario has led to defaults on loans and abandoned construction projects. As such, its removal from the stock exchange serves as a reminder of the precarious state of real estate in China.
In her last broadcast, Emily Tan demonstrated her considerable talents by putting together a rich package of context and color on The China Connection. She noted the far-reaching effects of the delisting. This year’s continuing squeeze on cash flows is being felt through to Evergrande’s peers in the real estate industry. This is deeply troubling news for investors and potential homeowners alike.