Evergrande’s Condemned Towers on China’s Hawaii Show Threat

  • City government asked Evergrande to tear down 39 buildings
  • Government moves to reclaim land complicates assets tally
Ocean Flower Island off the north coast of Danzhou in Hainan in 2020. Source: Imaginechina/AP Photo
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The wrecking ball headed for 39 apartment blocks on a tropical island at the southern tip of China poses the latest threat for China Evergrande Group as local governments race to reclaim land ahead of a looming restructuring of the embattled developer.

The government of Danzhou, a city in the province of Hainan, has asked Evergrande to tear down what it says are illegal buildingsBloomberg Terminal within 10 days. The order was signed Dec. 30, meaning the company could start demolition work on the near-complete condos by Jan. 9. Evergrande has appealed the order, according to a media report.