After becoming the most valuable real estate company in the world in 2018, Evergrande soon lost it all, as in 2021 it collapsed financially and started the Chinese property sector crisis under Xi Jinping’s policy.One of the key policy points that struck the real estate business in its core was Beijing’s rejig of borrowing rules for companies. At its enviable prime, the company boasted of a valuation of $50 billion.
Founder and chairman Hui Ka Yan saw his fortune plummet from an estimated $45bn in 2017 to less than a billion, adding to the company’s woes.Recently, as per a report from the BBC, Evergrande rival real estate giant Country Garden is still trying to secure a deal with its creditors. This comes as the company is looking to write off more than $14bn of outstanding foreign debt.
The property crisis in China was further accentuated by China’s pandemic policies that further constricted its economic movement.
Evergrande’s delisting comes at a crucial juncture as China’s economy is being strained by US tariffs and a deep-rooted property crisis, yet stocks are extending their bull run—a disconnect that’s stirring doubts on the rally’s staying power.
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