China’s real estate giant Evergrande Group is once again facing the risk of liquidation amid the ongoing crisis in the Chinese real estate sector, Invest-Gate reports.

Hearings are scheduled to be held on Monday in Hong Kong, including a rare session related to a “regulatory matter” that may result in the appointment of a liquidator for the renowned group.

The hearing will be presided over by Hong Kong Justice Linda Chan, who previously oversaw hearings involving real estate development companies and ordered the liquidation of one of them in 2023.

This upcoming hearing holds significant importance for the world’s most indebted real estate development company, Evergrande, whose liabilities amount to approximately $327 bn.

If the order to liquidate is approved, it could have far-reaching repercussions throughout various sectors of the Chinese financial system, occurring at a time when officials are working to prevent further deterioration of the stock market.

Furthermore, confidence in the housing sector of the world’s second-largest economy may be shaken.