BUSINESS

Evergrande Property Services Stake Sale Collapses, Sending Shares Down 24%

Published: Jun. 26, 2026 3:24 a.m. GMT+8

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Evergrande Property Services announced that negotiations between China Evergrande's liquidators and a potential buyer had terminated, and no formal transaction agreement was signed. Photo: VCG

Talks to sell a controlling stake in Evergrande Property Services Group Ltd. have collapsed after liquidators of its bankrupt parent, China Evergrande Group, failed to reach a formal agreement with a prospective buyer.

The property-management firm announced the termination of negotiations midday Thursday, sending its Hong Kong-listed shares down 23.5% to close at HK$0.78 ($0.1).

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Talks to sell a controlling stake in Evergrande Property Services collapsed, sending shares down 23.5% to HK$0.78.
The failed deal derails efforts to monetize a healthy asset for creditors of bankrupt parent China Evergrande.
Liquidators will seek new buyers after the termination; a prior 2021 sale attempt also fell through.

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Who’s Who

Evergrande Property Services Group Ltd.: Evergrande Property Services Group Ltd., a property-management firm, saw talks to sell a controlling stake collapse after liquidators of its bankrupt parent failed to reach an agreement. Its Hong Kong-listed shares fell 23.5%. The company remains profitable with 2025 revenue of RMB13.7 billion but faces challenges from its parent's liquidation.

China Evergrande Group: China Evergrande Group, bankrupt since January 2024, was ordered into liquidation by a Hong Kong court and delisted in August 2025. Its liquidators failed to sell a controlling stake in Evergrande Property Services, a key asset for creditor recovery. The company continues to face financial strain.

Guangdong Provincial Tourism Holdings Co. Ltd.: Guangdong Provincial Tourism Holdings Co. Ltd. is a state-owned enterprise that was the selected bidder for a 51.02% stake in Evergrande Property Services. Talks collapsed after failure to reach a formal agreement. Its chairman Guo Dajie was removed on May 12, 2025, and appointed head of the provincial culture and tourism department, leaving the post vacant.

Trustar Capital: Trustar Capital is a private-equity affiliate of CITIC Capital. It was among 14 strategic investors that invested HK$23.5 billion in Evergrande Property in August 2020 ahead of its IPO. Liquidators of China Evergrande also engaged with Trustar Capital as a potential buyer for the property-management unit.

PAG: According to the article, PAG was one of the entities previously engaged by the liquidators of China Evergrande in efforts to sell a controlling stake in Evergrande Property Services Group. However, those talks, like the latest with a state-owned enterprise, ultimately collapsed.

CITIC Capital: According to the article, Trustar Capital is the private-equity affiliate of CITIC Capital. It was among 14 strategic investors that invested HK$23.5 billion in Evergrande Property Services in August 2020, ahead of its IPO.

Country Garden Services Holdings Co. Ltd.: According to the article, Country Garden Services Holdings Co. Ltd. is a property management firm. By end of 2025, Evergrande Property's total area under management trailed only Country Garden Services and Poly Property Services, indicating Country Garden Services is one of the largest in the sector.

Poly Property Services Co. Ltd.: Poly Property Services Co. Ltd. is referenced in the article as one of the top property management firms in China, trailing only Country Garden Services in total area under management. It managed 601 million square meters by end-2025, indicating its significant market position in the industry.

Hopson Development Holdings Ltd.: In late 2021, a planned sale of a 50.1% stake in Evergrande Property Services to Hopson Development Holdings Ltd. for about HK$20 billion fell through.

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What Happened When

August 2025：: China Evergrande was delisted.

September 2025：: Liquidators of China Evergrande began trying to sell the 51.02% stake in Evergrande Property.

By end of 2025：: Evergrande Property reported revenue of 13.7 billion yuan ($2 billion), net profit of 1 billion yuan, and total area under management of 601 million square meters; cash and equivalents rose to 4.3 billion yuan; net assets nearly doubled to 1.95 billion yuan.

April 14, 2026：: Liquidators entered a 30-working-day exclusive negotiation period with a selected bidder, later identified as Guangdong Provincial Tourism Holdings Co. Ltd.

May 12, 2026：: Guo Dajie was removed as party chief and chairman of Guangdong Provincial Tourism Holdings.

May 29, 2026：: Guo Dajie was appointed head of the provincial culture and tourism department; chairman post at Guangdong Provincial Tourism Holdings remained vacant.

Midday Thursday, 2026：: Evergrande Property announced termination of negotiations to sell a controlling stake, sending shares down 23.5% to close at HK$0.78; intraday low of HK$0.74, weakest since mid-June 2025.

By Thursday’s announcement in 2026：: China Evergrande’s liquidators indicated they would work with financial advisers to seek new buyers for the property unit.

AI generated, for reference only