China Evergrande Group, China's largest real estate company, has been ordered by a Hong Kong court to liquidate amid a $300 billion debt crisis.

Evergrande's inability to deliver a restructuring plan has raised concerns about the potential impact on Chinese homebuyers, investors, and the broader economy.

The liquidation strips founder Xu Jiayin of control and involves appointing a liquidator for Evergrande's assets in Hong Kong, with the fate of foreign creditors' recovery remaining uncertain.

Despite the Evergrande situation, market responses have been varied with no immediate widespread negative impact on Chinese-related financial assets.

Analysts downplay the likelihood of a financial crisis akin to Lehman Brothers, but the event underscores the vulnerability of China's real estate sector.

The Chinese government faces the challenge of managing Evergrande's fallout to avoid further economic distress, as the company's CEO Shawn Siu commits to client and project continuity.

Alvarez & Marsal Inc. is named as the overseer of the Evergrande liquidation process.