Shares in China Evergrande were delisted from the Hong Kong Stock Exchange due to the giant real estate developer’s massive debt of over $340 billion. This led to a property market crisis in China that is still affecting the economy.

Evergrande’s troubles began when Chinese regulators cracked down on excessive borrowing by developers, causing a ripple effect in the property market. Fears of a default in 2021 rattled global markets, but the Chinese central bank reassured that the problems were contained.

The property downturn in China continues, impacting the economy as construction projects were suspended and home purchases slowed. With most Chinese families’ wealth tied up in property, the anemic housing market has constrained consumer spending.

China’s leaders are trying to revive the housing sector by providing lending, subsidies, and incentives for developers to complete projects. Sales and home prices are expected to further decline in August, prompting the government to act promptly to boost market confidence.

Evergrande, once a leader in China’s property market, filed for bankruptcy protection in New York City but later withdrew the case. Its liquidators have received debt claims totaling $45 billion, with assets valued at $3.5 billion. However, only $255 million worth of assets have been sold so far, indicating a slow process in repaying creditors.

Read more at Yahoo Finance: What to know about the delisting of property developer China Evergrande’s shares in Hong Kong