Once partners in prosperity, now bound by shared misfortune. Just two weeks after Evergrande was officially delisted from the Hong Kong Stock Exchange, its largest creditor has suffered a crushing blow.
Recently, Jingyi Co., Ltd., a listed company in China, received a court ruling: all shares held by its controlling shareholder, Nantong No. 3 Construction (Nantong Sanjian), have been seized and will be auctioned off to repay debts.
Back in 2021, when Evergrande’s debt crisis erupted, Nantong Sanjian ranked as Evergrande’s largest creditor with a staggering ¥36 billion (approx. $5 billion) in claims. But as Evergrande defaulted on payments, Nantong Sanjian was dragged down as well, becoming both Evergrande’s creditor and its debtor.
From Construction Giant to Collapsing Debtor
Nantong Sanjian was once one of China’s most reputable general contractors. Founded in 1958 as the State-owned Haimen County Construction Company, it became part of the “construction army” that supported national projects such as the Daqing Oilfield and large-scale infrastructure in Xinjiang. By the 1980s and 1990s, the firm had built landmarks like the Shanghai Oriental Pearl Tower and Beijing’s Asia Games Village Hotel, eventually earning China’s top-tier construction qualification in 2005—a status held by only 17 companies at the time.
In 2013, Evergrande and Nantong Sanjian formed a strategic partnership, just as Evergrande expanded aggressively into third-tier cities. Nantong Sanjian became Evergrande’s go-to contractor, repeatedly winning awards as its “Outstanding Strategic Partner.” But the deeper the cooperation, the bigger the financial hole.
By 2020, as Evergrande’s cash flow dried up, Nantong Sanjian was left exposed. Payments for massive housing projects never arrived, leaving the company unable to cover its own debts to subcontractors and material suppliers. Lawsuits piled up, wages went unpaid, and the once-proud builder earned the stigma of a “deadbeat enterprise.”
A Failed Diversification Bet
Sensing trouble in real estate as early as 2018, Nantong Sanjian tried to diversify. It spent ¥1.2 billion acquiring a controlling stake in Jingyi Co., Ltd., a manufacturer of copper rods and steel pipes. But the deal came at a 237% premium over market value, reflecting desperation rather than sound strategy.
Unfortunately, the bet failed. Jingyi’s stock price never returned to Sanjian’s entry level, and today trades below ¥11, well under the acquisition cost. With courts now seizing Sanjian’s holdings, Jingyi shares will be auctioned—its last remaining asset stripped away.
Evergrande’s Domino Effect in Nantong
Nantong Sanjian is not the only local firm to collapse under Evergrande’s weight. Nantong No. 1 Construction went bankrupt and liquidated, while Nantong No. 6 Construction entered restructuring. In 2021, online polls even named Sanjian the “most tragic victim of Evergrande’s collapse.” The court-ordered share auction simply marks the continuation of that downfall.
Yet ironically, for minority investors in Jingyi, this might not be entirely bad news. With Sanjian forced out, the door opens for a stronger new shareholder to step in, potentially reshaping the company’s future.
Conclusion
The fall of Nantong Sanjian is a vivid reminder of the chain reaction unleashed by Evergrande’s implosion. Once a pillar of China’s construction industry, the firm is now drowning in 266 lawsuits, stripped of its assets, and remembered as Evergrande’s biggest casualty.
For Evergrande’s creditors, the story illustrates a cruel reality: in a debt storm of this magnitude, even giants can be reduced to rubble.
References
- Evergrande delisting announcement, Hong Kong Stock Exchange, 2025
- Court ruling documents cited by Jingyi Co., Ltd. disclosures
- Historical records of Nantong Sanjian’s construction projects
