Evergrande Meltdown: China’s Real Estate Giant Ordered to Liquidate in Landmark Court Ruling

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China’s economic landscape faces another seismic shock as Evergrande, the troubled real estate giant, has been ordered to liquidate by a Hong Kong court. The ruling, delivered after Evergrande failed to present a viable plan to restructure its staggering $300 billion debts, is expected to reverberate through the world’s second-largest economy.

Judge Linda Chan, presiding over the case, remarked, “It would be a situation where the court says enough is enough. I consider that it is appropriate for the court to make a winding-up order against the company, and I so order.” The decision comes after 18 months of legal battles initiated by creditor Top Shine, signaling a significant blow to Evergrande’s already precarious financial situation.

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The implications of this landmark ruling extend beyond Evergrande’s woes. As trading in Evergrande’s shares and units comes to a halt, the Chinese markets, already fragile, face the prospect of further jolts. The decision sets the stage for a complicated and potentially tumultuous process, adding yet another layer of uncertainty to China’s economic landscape.

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