A Hong Kong court has decided to liquidate the China-based real estate giant Evergrande, which has long been grappling with financial difficulties. Judge Linda Chan stated that the company has not presented a plan to restructure its debts, saying, “Enough is enough.”
Evergrande Shares Plunge by 20%!
Following this decision, Evergrande shares on the Hong Kong stock exchange plummeted by more than 20%, prompting a suspension of trading.
“Today’s announced decision is quite distressing. However, the company’s operations in mainland China will continue.”Evergrande Director Shawn Siu
According to Siu’s statement, during the liquidation process, the company’s assets will be seized and sold. The proceeds are expected to be directed towards paying off debts exceeding 300 billion dollars.
Could Deeply Impact the Chinese Economy!
Evergrande has been undergoing a challenging period for a long time due to financial troubles, a rapid increase in the company’s debts, and liquidity issues. Furthermore, the liquidation of Evergrande is considered a significant event that could deeply impact the overall stability of the Chinese economy.