Summary
Shares of China Evergrande, a large real estate company, were removed from the Hong Kong Stock Exchange after failing to sort out its debt. Evergrande's financial issues have contributed to a long-lasting crisis in China's property market, affecting the economy.
Key Facts
- Evergrande's shares were delisted from the Hong Kong Stock Exchange as of Monday.
- The company failed to present an acceptable debt restructuring plan.
- Evergrande had debts totaling over $340 billion.
- The company's financial problems began after Chinese authorities limited excessive borrowing in the real estate sector in 2020.
- Many developers, including Evergrande, defaulted on their debts, worsening the property market crisis.
- China's real estate sector was a significant part of its economy, accounting for about 20%.
- Measures have been taken by the Chinese government to stabilize the housing market and finish incomplete projects.