It is unclear whether Chinese authorities will accept Monday’s Hong Kong court ruling and allow international creditors to seize the company’s assets.
Evergrande, once China’s biggest real estate seller, has been trying to avoid formal bankruptcy since 2021, when it defaulted on $330 billion in debt and shocked global markets.
The company’s woes track the rapidly deteriorating health of China’s real estate sector, which accounts for about a fifth of growth in the world’s second-largest economy, and the country’s overall outlook.
China’s stock market performed particularly poorly last year, with gross domestic product (GDP) growing just 5.2%, the slowest growth in 30 years, excluding the three years of the pandemic.
About $6 trillion has been wiped from the value of Chinese and Hong Kong stocks over the past three years, underscoring investors’ concerns about the future of China’s economy.