Chinese real estate company Evergrande has been ordered by a Hong Kong court to liquidate its assets, having become heavily indebted in recent times.
Judge Linda Chan told the group “enough is enough” in response to its consistent failures in devising a viable plan for debt restructuring.
With a debt load exceeding US$300 billion, Evergrande has been at the epicentre of the Chinese property crisis, having triggered widespread concern after it defaulted on payments two years prior.
Executive director Shawn Siu said the decision was "regrettable”, but was quick to note that the conglomerate's operations in mainland China would press on, distinguishing the Hong Kong subsidiary as an independent entity from the group's mainland business ventures.
The court decision comes as many Chinese residents await the completion of their homes, a situation exacerbated by the broader instability of the nation’s property market.
Evergrande stock dipped by over 20% to US$0.16, shortly before shares were suspended on the Hong Kong exchange.
Despite the news, the FTSE 100 opened over 26 points higher at 7,661, ahead of an important week of interest rate decisions.