Business
Evergrande: Chinese property giant delisted after spectacular fall
Business reporter, BBC News
AFP via Getty ImagesChinese property giant Evergrande’s shares were taken off the Hong Kong stock market on Monday after more than a decade and a half of trading.
It marks a grim milestone for what was once China’s biggest real estate firm, with a stock market valuation of more than $50bn (£37.1bn). That was before its spectacular collapse under the weight of the huge debts that had powered its meteoric rise.
Experts say the delisting was both inevitable and final.
“Once delisted, there is no coming back,” says Dan Wang, China director at political risk consultancy Eurasia Group.
Evergrande is now best-known for its part in a crisis that has for years dragged on the world’s second-largest economy.
What happened to Evergrande?
Just a few years ago Evergrande Group was a shining example of China’s economic miracle.
Its founder and chairman Hui Ka Yan rose from humble beginnings in rural China to top the Forbes list of Asia’s wealthiest people in 2017.
His fortune has since plummeted from an estimated $45bn in 2017 to less than a billion, his fall from grace as extraordinary as his company’s.
In March 2024, Mr Hui was fined $6.5m and banned from China’s capital market for life for his company overstating its revenue by $78bn.
Liquidators are also exploring whether they can recover cash for creditors from Mr Hui’s personal property.
At the time of its collapse, Evergrande had some 1,300 projects under development in 280 cities across China.
The sprawling empire also included an electric carmaker and China’s most successful football team, Guangzhou FC, which was kicked out of the football league earlier this year after failing to pay off enough of its debts.
AFP via Getty ImagesEvergrande was built on $300bn (£222bn) of borrowed money, earning it the unenviable title of the world’s most indebted property developer.
The rot set in after Beijing brought in new rules in 2020 to control the amount big developers could borrow.
The new measures led Evergrande to offer its properties at major discounts to ensure money was coming in to keep the business afloat.
Struggling to meet interest payments, the firm soon defaulted on some of its overseas debts.
After years of legal wrangling, the Hong Kong High Court ordered the company to be wound up in January 2024.
Evergrande’s shares had been under threat of delisting ever since because they were suspended from trading after the court order.
By that point the crisis engulfing the firm had wiped more than 99% from its stock market valuation.
The liquidation order came after the company was unable to offer a workable plan to shed billions of dollars of overseas liabilities.
Earlier this month, liquidators revealed that Evergrande’s debts currently stand at $45bn and that it had so far sold just $255m of assets. They also said they believe a complete overhaul of the business “will prove out of reach”.
The “delisting now is surely symbolic but it’s such a milestone,” Ms Wang says.
All that remains is which creditors are paid and how much they can get in the bankruptcy process, says Professor Shitong Qiao from Duke University.
The next liquidation hearing is due to take place in September.
How was China’s economy impacted?
China is facing a number of major problems, including US President Donald Trump’s tariffs, high local government debt, weak consumer spending, unemployment and an ageing population.
But experts say Evergrande’s collapse, along with the serious problems faced by other developers, has hit the country hardest.
“The property slump has been the biggest drag on the economy, and the ultimate reason why consumption is suppressed,” Ms Wang says.
Getty ImagesThis is particularly problematic as the industry accounted for about a third of the Chinese economy and was a major source of income for local governments.
“I don’t think China has found a viable alternative to support its economy at a similar scale,” Professor Qiao says.
The property crisis has led to “massive layoffs” by heavily-indebted developers, Jackson Chan from financial markets research platform Bondsupermart says.
And many real estate industry employees that kept their jobs have seen big pay cuts, he adds.
The crisis is also having a major impact on many households as they tend to put their savings into property.
With housing prices dropping by at least 30%, many Chinese families have seen their savings fall in value, says Alicia Garcia-Herrero, chief economist for Asia Pacific at French bank Natixis.
This means they are less likely to spend and invest, she adds.
In response, Beijing has announced a raft of initiatives aimed at reviving the housing market, stimulating consumer spending and boosting the wider economy.
They range from measures to help new home owners and support the stock market to incentives to buy electric cars and household goods.
Despite the hundreds of billions of dollars Beijing has poured into the economy, China’s once-blistering growth has eased to “around 5%”.
While most Western countries would be more than happy with that, it’s slow for a country that saw growth of more than 10% a year as recently as 2010.
Is the property crisis over yet?
In short, probably not.
Even as Evergrande continues to grab headlines, several other Chinese property firms are still facing major challenges.
Earlier this month, China South City Holdings was handed a winding up order by Hong Kong’s High Court, making it the biggest developer to be forced into liquidation since Evergrande.
Meanwhile, rival real estate giant Country Garden is still trying to secure a deal with its creditors to write off more than $14bn of outstanding foreign debt.
After a series of postponements, its next High Court liquidation hearing in Hong Kong is due to take place in January 2026.
“The whole property sector has been in trouble. More Chinese property firms will collapse,” Professor Qiao says.
AFP via Getty ImagesWhile the Chinese government has taken a number of measures to help shore up the property market and support the economy as a whole it has not swooped in to directly bail out developers.
Mr Chan says these initiatives seem to be having a positive impact on the property market: “We think the bottom [has been reached] and it should be in a slow recovery. However, we probably don’t expect the recovery to be very strong.”
Wall Street investment giant Goldman Sachs warned in June that property prices in China will continue to fall until 2027.
Ms Wang agrees, and estimates that China’s stricken property market will “hit the bottom” in around two years when demand finally catches up with supply.
But Ms Garcia-Herrero puts it in starker terms: “there is no real light at the end of the tunnel.”
Beijing has sent a “clear message on its intention of not bailing out the housing sector,” Ms Wang adds.
The Chinese government has been careful to avoid the kind of measures that could encourage further risky behaviour by an already heavily indebted industry.
And while in the boom times, the property market was a key driver of China’s economic growth, the ruling Communist Party’s priorities now lie elsewhere.
President Xi Jinping is more focussed on high-tech industries like renewable energy, electric cars and robotics.
As Ms Wang puts it, “China is in a deep transition to a new age of development.”
Suzanne BearneTechnology Reporter, Querétaro, Mexico
Arterra/Getty ImagesLocated in the middle of Mexico, Querétaro is a charming and colourful colonial-style city known for its dazzling stone aqueduct.
But the city, and state of the same name, is also recognised for a very different reason – as Mexico’s data centre capital.
Across the state companies including Microsoft, Amazon Web Services and ODATA own these warehouse-like buildings, full of computer servers.
No one could supply an exact number, but there are scores of them, with more being built.
Ascenty, which claims to be the largest data centre company in Latin America, has two in Querétaro, both around 20,000 sq ft in size, with a third under construction.
It is forecast that more than $10bn (£7.4bn) in data centre-related investment will pour into the state in the next decade.
“The demand for AI is accelerating the construction of data centres at an unprecedented speed,” says Shaolei Ren, associate professor of electrical and computer engineering at the University of California Riverside.
So, what’s the attraction of Querétaro?
“It’s a very strategic region,” explains Arturo Bravo, Mexico country manager at Ascenty.
“Querétaro is right in the middle [of the country], connecting east, west, north and south,” he says.
That means it is relatively close to Mexico City. It is also connected to high-speed data cables, so large amounts of data can be shifted quickly.
Mr Bravo also points out that there is support from the municipality and central government.
“It’s been identified as a technology hub,” he says. “Both provide a lot of good alternatives in terms of permits, regulation and zoning.”
But why are many US companies choosing this state over somewhere closer to home?
“The power grid capacity constraint in the US is pushing tech companies to find available power anywhere they can,” says Shaolei Ren, associate professor of electrical and computer engineering at the University of California Riverside, adding that the cost of land and energy, and business-friendly policies are also attractive.
Shaolei RenData centres host thousands of servers – a specialised type of computer for processing and sending data.
Anyone that’s worked with a computer on their lap will know that they get uncomfortably hot. So to stop data centres melting down, elaborate cooling systems are needed which can use huge amounts of water.
However, not all data centres consume water at the same rate.
Some use water evaporation to dissipate the heat, which works well but is thirsty.
A small data centre using this type of cooling can use around 25.5 million litres of water per year.
Other data centres, like those owned by Ascenty, use a closed-loop system, which circulates water through chillers.
Meanwhile, Microsoft told the BBC it operates three data centres in Querétaro. They use direct outdoor air for cooling approximately 95% of the year, requiring zero water.
It said for the remaining 5% of the year, when ambient temperatures exceed 29.4°C, they use evaporative cooling.
For the fiscal year 2025, its Querétaro sites used 40 million litres of water, it added.
That’s still a lot of water. And if you look at overall consumption at the biggest data centre owners then the numbers are huge.
For example, in its 2025 sustainability report Google stated that its total water consumption increased by 28% to 8.1bn gallons between 2023 to 2024.
The report also said that 72% of the freshwater it used came from sources at “low risk of water depletion or scarcity”.
In addition, data centres also indirectly consume water, as water is needed to produce electricity.
Getty ImagesThe extra water consumption by data centres is a big problem for some in Querétaro which last year endured the worst drought of a century, impacting crops and water supplies to some communities.
At her home in Querétaro, activist Teresa Roldán tells me residents have asked the authorities for more information and transparency about the data centres and the water they use but says this has not been forthcoming.
“Private industries are being prioritised in these arid zones,” she says. “We hear that there’s going to be 32 data centres but water is what’s needed for the people, not for these industries. They [the municipality] are prioritising giving the water they have to the private industry. Citizens are not receiving the same quality of the water than the water that the industry is receiving.”
Speaking to the BBC in Querétaro, Claudia Romero Herrara, founder of water activist organisation Bajo Tierra Museo del Agua,  wouldn’t comment directly on the data centres due to a lack of information but says she’s concerned about the state’s water issues.
“This is a state that is already facing a crisis that is so complex and doesn’t have enough water for human disposal. The priority should be water for basic means…that’s what we need to guarantee and then maybe think if there are some resources available for any other economic activity. There has been a conflict of interest on public water policy for the last two decades.”
A spokesperson for the government of the state of Querétaro defended their decision saying: “We have always said and reiterated that the water is for citizen consumption, not for the industry. The municipality has zero faculties to water allocation and even less to assign water quality. Nor the state, nor the municipality can water allocate to any industry or the primary sector, that’s a job for the National Water Commission.”
Suzanne BearneAnother concern for those living near data centres is air pollution.
Prof Ren says data centres typically rely on diesel backup generators that release large amounts of harmful pollutants.
“The danger of diesel pollutants from data centres has been well recognised,” he says, pointing to a health assessment of the air quality surrounding local data centres by the Department of Ecology at the state of Washington.
Mr Bravo responded to those concerns by saying: “We operate under the terms and conditions specified by authorities, which, in turn, in my perspective, are the ones taking care of the fact that those conditions are acceptable for the communities around and the health of everybody.”
As for the future, Ascenty is planning more data centres in the region.
“I do see it just kind of progressing and progressing, with a new data centre there every few years,” says Mr Bravo.
“The industry will continue to grow as AI grows. It’s a great future in terms of what is coming.”
Ulta Beauty on Thursday raised its full-year forecast, after reporting growth in all major categories and topping Wall Street’s quarterly sales expectations.
The beauty retailer said it expects net sales of between $12 billion and $12.1 billion, up from its previous range of $11.5 billion and $11.7 billion, representing an increase from last fiscal year’s net sales of $11.3 billion. It expects earnings per share of $23.85 to $24.30, up from its previous range of $22.65 to $23.20.
It expects comparable sales, a metric that takes out one-time factors like store openings and closures, to grow between 2.5% to 3.5%, up from projections of as much as 1.5%. The company had raised its annual profit forecast and the upper end of its full year sales range in May.
In the company’s news release, CEO Kecia Steelman said its outlook for the year “reflects both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year.”
Shares of Ulta gained about 3% in extended trading, after earlier hitting a 52-week during the regular session.
Here’s what the company reported for the fiscal second quarter compared with what Wall Street expected, according to LSEG:
- Earnings per share: $5.78. It was not immediately clear if that was comparable to the $5.08 expected by analysts.
- Revenue: $2.79 billion vs. $2.67 billion expected
In the three-month period that ended August 2, Ulta’s net income rose to $260.88 million, or $5.78 per share, from $252.6 million, or $5.30 per share, in the year-ago period. Revenue increased from $2.55 billion in the year-ago quarter.
Beauty has remained a hot category for consumers, even as they pull back or watch their spending in other discretionary categories. Yet that’s fueled tougher competition for Ulta Beauty as specialty players like LVMH-owned Sephora, big-box retailers like Walmart and department stores like Kohl’s have all bulked up their beauty businesses.
For investors, tariffs have been a closely watched challenge for retailers, too. Compared to other retailers, Ulta is not as directly exposed. Only about 1% of the company’s merchandise last fiscal year was direct imports, then-CFO Paula Oyibo said in May on the company’s earnings call. She said at the time most of Ulta’s exposure to the higher duties was minor, such as store fixtures and supplies.
Even in tumultous economic times, Steelman said beauty and wellness tend to fare better because they “offer a unique sense of comfort and escape.”
“Our insight suggests consumers continue to prudently manage their day-to-day spending and are watchful of pricing trends in response to tariffs,” she said on the earnings call. “At the same time, beauty enthusiasts tell us that they’re prioritizing their beauty regimens and remain strongly engaged within the category.”
In the second quarter, Ulta’s comparable sales grew 6.7% year over year, more than double analysts’ expectations, according to StreetAccount.
Customers visited more and spent more when they shopped on Ulta’s website and in its stores compared to the year-ago quarter. Transactions rose by 3.7% and average ticket increased by 2.9%.
Ulta added new brands and products that drove purchases in the quarter, including more products from Sol de Janeiro, exclusive Korean beauty brand Peach & Lily and Shakira’s hair care brand, Isima, Steelman said on the company’s earnings call.
Plus, she said, it’s trying to reach more of its existing and prospective customers in new ways. It had an activation at the Coachella and Lollapalooza music festivals and was the official beauty retail partner of Beyonce’s Cowboy Carter Tour.
In a growing number of Ulta stores, it is dedicating space to wellness-related products, such as supplements. It has opened a wellness shop in about 370 stores and plans to expand them to more stores this quarter, Steelman said.
Along with attracting more customers in the U.S., Ulta has looked internationally for growth. It announced in July that had acquired Space NK, a British beauty retailer, from Manzanita Capital. The deal allows Ulta to enter a new international market, since Space NK has 83 stores in the United Kingdom and Ireland.
Ulta did not disclose the price of the acquisition, saying it funded the transaction with cash on hand and Ulta’s existing credit facility and that it would not be material to financial results for the fiscal year.
For Ulta, Space NK offered a less expensive way to enter a new market, Steelman said. Its business, which will continue to operate independently, could offer learnings that could shape Ulta’s strategy, she said. Compared to Ulta, its shops tend to be smaller, located on main streets in cities and sell primarily prestige beauty merchandise.
The company is expanding in other international markets, too. Ulta recently marked the soft opening of its first Ulta store in Mexico and it plans to open its first store in the Middle East later this year, Steelman said Thursday on the company’s earnings call.
Ulta is also introducing a third-party marketplace, which Steelman said will launch in the third quarter. A growing number of retailers, including Best Buy, are launching the marketplaces a way to expand the mix of merchandise they carry without needing more store shelf space or buying more of their own inventory.
At the same time, Ulta recently announced the end of one of its efforts to expand reach. It cut ties with Target, which had opened mini Ulta shops in more than 600 big-box stores. The licensing deal, which will end in August 2026, allowed Target to sell a smaller and rotating assortment of makeup, skincare, hair care products and more that are carried by the full Ulta stores. Target carried those items on its website, and it staffed the shops.
For Ulta, however, the Target deal contributed little to its finances, Steelman said. Royalty revenue from the deal last fiscal year “was well below 1% of net sales,” she said on the company’s earnings call.
Ulta is looking for a new CFO as well. The company’s former CFO, Oyibo, left Ulta in late June after about a year in the role. Ulta has not yet announced her permanent successor.
Susan Monarez, President Donald Trump’s nominee to be the Director of the Centers for Disease Control and Prevention (CDC), arrives to testify for her confirmation hearing before the Senate Committee on Health, Education, Labor, and Pensions in the Dirksen Senate Office Building on June 25, 2025 in Washington, DC.
Kayla Bartkowski | Getty Images
The White House on Thursday said President Donald Trump has fired Centers for Disease Control and Prevention Director Susan Monarez after she refused to resign, and that a new replacement will be named soon.
“The president fired her, which he has every right to do,” White House press secretary Karoline Leavitt said during a briefing.
She said Trump has “the authority to fire those who are not aligned with his mission,” and that he or Health and Human Services Secretary Robert F. Kennedy Jr. will announce a new CDC director “very soon.”
In a statement, lawyers for Monarez said they were “not aware of anything new happening.”
Earlier Thursday, Monarez’s attorney Mark Zaid said Monarez would remain in the role because she is a presidential appointee and only Trump can fire her. Zaid said White House personnel had tried to fire her, not the president.
“Receiving an email from an HR staffer simply saying ‘you’re fired’ is insufficient as a matter of law to constitute the termination of a federal employee, especially one appointed by the president and confirmed by the Senate,” Zaid said.
He also said she “refused to rubber-stamp unscientific, reckless directives and fire dedicated health experts” and that “she chose protecting the public over serving a political agenda.”
“For that, she has been targeted,” he said.
Monarez and Kennedy were at odds over vaccine policy, The New York Times reported Wednesday, citing an anonymous administration official.
Kennedy, a prominent vaccine skeptic, has taken several steps to change immunization policy in the U.S.
Monarez was sworn in on July 31. A longtime federal government scientist, she is the first CDC director to be confirmed by the Senate following a new law passed during the pandemic that required lawmakers to approve nominees for the role.
Trump’s move to oust her is the latest in a leadership upheaval at the CDC.
At least four other top health officials announced Wednesday that they were quitting the agency shortly after HHS said Monarez was “no longer” the director of the CDC in a post on X.
In a Fox News interview Thursday morning, Kennedy declined to comment on “personnel issues.” But he said the agency “is in trouble, and we need to fix it, and we are fixing it, and it may be that some people should not be working there anymore.”
Kennedy said Trump has “very, very ambitious hopes for the CDC right now.” But he said the CDC “has problems,” claiming that the agency took the “wrong” approach when it came to social distancing, masking and school closures during the Covid pandemic.
“We need to look at the priorities of the agency, if there’s really a deeply, deeply embedded … malaise at the agency, and we need strong leadership that will go in there and that will be able to execute on President Trump’s broad ambitions for this agency, the gold standard science and to what it was when we were growing up, which was the most respected health agency in the world,” Kennedy said.
The leadership departures come at a tumultuous time for the agency, which is reeling from a gunman’s attack on the CDC’s Atlanta headquarters on Aug. 8. A police officer died in the shooting.Â
Correction: This article has been updated to reflect the correct day the White House said Trump fired Susan Monarez after she refused to resign, and to reflect the correct wording of Robert F. Kennedy Jr.’s last quote.
— CNBC’s Angelica Peebles contributed to this report.
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