(April 16): China Evergrande Group’s liquidators have selected Guangdong Provincial Tourism Holdings Co to enter exclusive talks to acquire a majority stake in the developer’s property management unit, people familiar with the situation said, as they try to claw back some money from one of the country’s most significant corporate collapses.
The state-owned company was picked ahead of others including private equity firm PAG, the people said, asking not to be identified because the information isn’t public. Trustar Capital had also been considering a bid, Bloomberg News reported in January.
More investors could join Guangdong Provincial Tourism if an agreement for stake in Evergrande Property Services Group Ltd is reached, the people said.
Hong Kong’s High Court appointed Edward Middleton and Tiffany Wong of Alvarez & Marsal as liquidators for Evergrande in 2024, three years after the once high-flying developer spiralled downward under liabilities that at one point reached more than US$300 billion.
China Evergrande Group holds about 51% of Hong Kong-listed Evergrande Property Services, which offers an avenue for creditors trying to salvage something from the Evergrande wreckage. Evergrande Property Services jumped as much as 17% in Hong Kong on Thursday, the biggest gain in seven months. It now has a market value of about US$1.8 billion.
The company said in a filing on Tuesday that exclusive negotiations with a selected bidder would take place for 30 business days. It didn’t name the bidder in the Hong Kong stock exchange filing.
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Representatives for Evergrande’s liquidators and PAG declined to comment. Guangdong Provincial Tourism didn’t respond to a request for comment.
Evergrande Property Services’ market value is way below the highs of around US$26 billion five years ago. Its net income in 2025 totalled 987 million yuan (US$145 million) on 13.7 billion yuan revenue.
Evergrande’s collapse in 2021 left bondholders and banks facing billions in losses and contributed to a prolonged slump in China’s property market. Founder Hui Ka Yan — once Asia’s second-wealthiest person — pleaded guilty this week in a Shenzhen court to charges including fundraising fraud and bribery.
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Guangdong Provincial Tourism was established in 2014 to bring together the southern Chinese region’s top travel and hospitality brands. The company oversees everything from five-star hotels and major travel agencies to scenic sites and cultural media, according to its website.
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