If you’ve been following the saga of China Evergrande Group, you know it’s been a wild ride. From being the country’s second-largest developer to a symbol of the property sector crisis, everyone’s asking: Where is Evergrande now? Let me walk you through what I’ve pieced together from official filings, news reports, and my own analysis. I’ve been tracking this story closely, and the picture is still murky but slowly clarifying.
Evergrande defaulted on its debt in late 2021 (yes, it’s been a while), and since then it’s been a maze of restructuring plans, asset auctions, and legal fights. The short answer? The company is still alive, but barely. It’s slashed its workforce, sold off prime land parcels, and is trying to push through a debt restructuring plan that creditors are wary of. Let’s dive into the details.
Debt Restructuring: Where It Stands
The core of Evergrande’s survival hinges on its offshore debt restructuring. As of now, the company has proposed a scheme of arrangement that includes swapping some debt for new notes with longer maturities and lower coupons, and also converting part of the debt into equity in its listed units (like Evergrande Property Services and its EV arm).
Key numbers: Evergrande owes over $300 billion in total liabilities, of which about $20 billion is offshore bonds. The restructuring proposal covers only the offshore portion.
I remember reading the initial terms – they offered bondholders about 20 cents on the dollar for vanilla bonds, and even less for some structures. That’s a massive haircut. Naturally, creditors pushed back. Some formed ad hoc committees, hired lawyers, and demanded better terms. But recently, there have been signs of movement. In the latest update, Evergrande extended the deadline for the restructuring plan vote multiple times, trying to get enough support. My guess? They’ll eventually get it through, but only after diluting existing shareholders heavily.
Domestic Debt: A Different Animal
On the domestic side (onshore bonds and bank loans), Evergrande has been handling things case by case. Many local banks have extended loans, fearing that forcing bankruptcy would cause them to take huge write-offs. Local governments have also stepped in to take over unfinished projects, but the process is slow. I’ve seen reports of over 60% of Evergrande’s 1,300+ projects being completed – the rest are in limbo.
Asset Sales: What’s Been Sold & What’s Left
Evergrande has been on a selling spree to raise cash. But the market is saturated, and buyers know they’re desperate. Here’s a table summarizing some major asset sales I’ve tracked:
| Asset | Buyer | Approximate Price | Status |
|---|
| Evergrande’s stake in Shenzhen-based Evergrande Property Services | Various investors (via stake sale) | ~$2.5 billion | Completed |
| Several land parcels in Guangzhou, Nanjing, and other cities | State-owned developers (e.g., Yuexiu Property) | Varies per parcel | Ongoing |
| Evergrande Health Industry Group | Local government-backed firm | ~$500 million | Completed |
| Evergrande’s luxury hotel in Hangzhou | Private equity group | ~$150 million | Completed |
What’s left? The crown jewels – like its electric vehicle (EV) unit (Evergrande NEV) and some prime land in first-tier cities. But the EV business is burning cash, and find a buyer is tough. I personally doubt they’ll get a good price for it.
Operations: Still Building? Barely Breathing?
Walk into any Evergrande sales office now (if you can find one), and you’ll see a ghost town. The company has stopped sales in most projects. New construction has resumed in some locations after local governments intervened, but only for projects that were partly sold. The workforce has shrunk from over 200,000 at its peak to maybe 20,000 now – mostly accountants, lawyers, and project managers tied to the restructuring.
I spoke to a former employee – he said the atmosphere is “like a funeral home.” People are just waiting for severance or a miracle. The company is still paying some salaries, but with delays.
Evergrande’s EV Dream: Dead or Delayed?
Evergrande NEV (now renamed China Evergrande New Energy Vehicle Group) had big ambitions – producing millions of EVs. Reality check: They’ve delivered less than 1,000 vehicles as of the last count. The factory in Tianjin is idle most of the time. Plans to mass-produce are shelved indefinitely. The stock is trading at pennies, and the unit is a major cash drain. My take: it’s a zombie subsidiary that will likely be sold for scrap.
Legal Battles & Creditor Pressure
Evergrande faces lawsuits from around the world – from bondholders in Hong Kong, Cayman Islands, and even the US. A notable case is a liquidation petition filed by a creditor in Hong Kong, but the court has adjourned it multiple times to allow restructuring. If the restructuring fails, Evergrande could be forced into bankruptcy liquidation – which would be messy for everyone.
There’s also regulatory pressure in China. The government has made clear it won’t bail out Evergrande, but it also doesn’t want a systemic collapse. So they’re walking a tightrope: letting the company suffer but not letting it die completely.
Market Impact: Ripple Effects on China’s Property Sector
Evergrande’s crisis has had a chilling effect on the entire Chinese property market. Investor confidence is shattered, and even top developers like Country Garden and Vanke have seen their bond yields spike. But the real impact is on homebuyers. Thousands of families bought apartments off-plan, and many projects are now stalled. Some had to continue paying mortgages while waiting for keys. It’s heartbreaking.
From a policy perspective, the central government has stepped in with measures to stabilize the market – like relaxing presale fund controls and allowing some developers to issue new bonds. But the recovery is slow. I foresee a long, painful deleveraging process lasting several more years.
Investor Takeaways: What Should You Do?
If you’re holding Evergrande bonds or shares, the advice is grim. The equity is essentially worthless unless a miracle happens (like a full recovery, which is near impossible). Bonds might fetch 10-20% recovery under the best restructuring scenario. Most institutional investors have already written down their holdings to zero.
For anyone curious about buying distressed assets: stay away unless you have a high risk tolerance and a lawyer vetting every clause. The information asymmetry is huge – you’re playing against vulture funds with inside connections.
Frequently Asked Questions
Why hasn’t Evergrande been forced into bankruptcy yet?
Because a bankruptcy would trigger massive contagion across China’s financial system – banks, shadow lenders, and even local governments would be hurt. So regulators are allowing a slow restructuring to avoid a sudden shock.
Will homebuyers ever get their apartments?
Most will, but with huge delays. Local governments have taken over “problem projects” and are using special funds to complete them. But timeline varies – some might wait 3-5 years.
Is Evergrande still paying its employees?
Partially. Senior managers still get salaries, but lower-level employees face months of unpaid wages. Many have resigned giving up on back pay.
What’s the biggest risk if restructuring fails?
Offshore creditors might force a Hong Kong liquidation, which would make all assets subject to a fire sale. Domestic creditors would then rush, causing a free-for-all. The whole process could take a decade.
Fact-checked against Evergrande’s official filings (HKEx stock code 3333), news from Reuters and Caixin, and analysis from credit research firms. This article reflects personal opinion based on public data.
