The High Court of Hong Kong, on the 29th, initiated a liquidation trial against Evergrande Group, a major Chinese real estate developer facing financial crisis. This has raised concerns about potential chaos spreading in China’s financial market.

Evergrande Group, being one of China’s largest real estate developers, is also burdened with massive debt. They have about 300 billion dollars in liabilities and were aiming for business reconstruction, but with the judgment of the High Court of Hong Kong, the process towards liquidation has begun.

Liquidation is a method of repaying creditors by selling off assets, but this process can generally be challenging and long-term. Depending on Evergrande Group’s response, it could have a significant impact on China’s financial and real estate markets.

Regarding this matter, Hong Kong media have made it clear that Hong Kong’s unique legal procedures have been applied strictly, with an emphasis on fairness.

The liquidation order against Evergrande Group has the potential to deliver a new shock to China’s already struggling financial market, and future developments will be watched closely. On the other hand, the initiation of legal processes may not only hinder the company’s reconstruction but also trigger competition for asset distribution among creditors.