The Guangzhou Intermediate People’s Court announced on Friday that it has formally accepted a petition to liquidate Hengda Real Estate, the core onshore subsidiary of the China Evergrande Group. The petition was filed by the Huaxia branch of the Guangzhou Rural Commercial Bank. According to the court, the filing met the necessary legal requirements stipulated under China’s Enterprise Bankruptcy Law, marking a significant step in the formal dissolution of the developer's domestic assets.

This development follows years of financial turmoil for Evergrande, which was once recognized as China’s largest property developer. The acceptance of the liquidation petition effectively initiates a court-supervised process to wind down the company's operations and address its outstanding debts. While the court’s decision provides a legal framework for the liquidation, the process is expected to be complex given the scale of the company's liabilities and the number of stakeholders involved. The court's announcement comes shortly after reports concerning the legal status of the company's founder, highlighting the broader collapse of the firm's once-dominant position in the Chinese real estate market.