Recently, China’s Evergrande Group once again became the focus of the market. The bad debts of about 11.3 billion yuan from 12 companies under the “Evergrande Group” were listed for sale, involving projects in multiple cities across China. At the same time, Evergrande’s subsidiary companies appointed liquidators collectively and individually, with the company’s shares remaining suspended, highlighting the significant financial pressure and complex legal challenges facing Evergrande.
According to Jingdong Asset Trading Platform, the Beijing branch of China Great Wall Asset Management Co., Ltd. recently listed for sale the bad debts of 12 companies under the “Evergrande Group”, totaling approximately 11.3 billion yuan. These bad assets cover projects in nine cities including Beijing, Guangzhou, Tianjin, Chengdu, Zhengzhou, Guiyang, Nanchang, Ningbo, Wuxi, involving a variety of project types such as residential, commercial, and cultural tourism, with collateral including land, construction in progress, and real estate.
Among these debts, Tianjin Shanshui City Investment has the largest debt scale of 2.477 billion yuan, with collateral being 1,204 housing units in Tianjin’s Wuqing District Evergrande Shanshui City project, including 152 completed units and 1,052 under construction. In addition, debts exceeding 1 billion yuan are also held by Chengdu Jinjin Jiang Real Estate, Zhengzhou Hengze Tong Jiankai Real Estate, Beijing Hengfangxing Real Estate, three related companies in Guiyang, and Evergrande Real Estate Group itself.
Industry analysts believe that the concentrated listing of these bad debts indicates the accelerated asset disposal process in Evergrande’s debt restructuring, aiming to maximize fund recovery and alleviate the massive debt pressure.
In addition to the large-scale disposal of bad debts, the announcement made by China Evergrande on June 9th confirmed once again that its subsidiary, CEG Holdings (BVI) Limited (referred to as “CEG Holdings”), formally appointed liquidators, namely Edward Simon Middleton and Wong Wing-sze from A&M Advisors Limited.
This appointment took effect on April 28, 2025, and clarified that the prior joint application submitted by China Evergrande to the High Court of the Hong Kong Special Administrative Region concerning the transfer of one ordinary share held by China Evergrande in CEG Holdings to Build-Up (BVI) Limited in liquidation in the British Virgin Islands will now be handled by the liquidators of CEG and CEG Holdings.
The progress of the liquidation of CEG Holdings is closely related to the overall debt restructuring and liquidation requests of China Evergrande. CEG Holdings holds approximately 49.65% of Evergrande’s issued shares. Previously, China Evergrande was issued a winding-up order by the Hong Kong court on January 29, 2024, with the company’s shares suspended from trading since January 29, 2024, and remaining suspended with no set resumption date.
The challenges faced by China Evergrande are not only financial but also extend to legal matters. Its former chairman, Xu Jiayin, has been subject to coercive measures by the authorities on suspicion of illegal activities, and the company is also confronting numerous legal and financial issues.