It is unclear whether Chinese authorities will recognize the ruling issued by a Hong Kong court on Monday and allow international creditors to seize the company's assets.
Evergrande, once China's largest property seller, has been trying to avoid formal bankruptcy since 2021, when it defaulted on $330 billion in debt and sent shockwaves through global markets.
The company's troubles track the rapid deterioration in the health of China's real estate sector, which accounts for about a fifth of growth in the world's second-largest economy — and China's prospects overall.
China recorded GDP growth of just 5.2% last year – the slowest in three decades, excluding the three pandemic years – and the Chinese stock market performed particularly poorly.
About $6 trillion has been wiped off the value of Chinese and Hong Kong stocks in the past three years, underscoring investors' concerns about China's economic future.
