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This Chinese billionaire has reportedly lost 93 per cent of his wealth

This Chinese billionaire has reportedly lost 93 per cent of his wealth

China Evergrande Group, the real estate developer founded and led by Hui Ka Yan, has faced major financial challenges in recent years.

Hui had to sell some of his houses and private jets to save the company from crippling debt. (Source: Reuters) Hui had to sell some of his houses and private jets to save the company from crippling debt. (Source: Reuters)

Hui Ka Yan is a Chinese billionaire businessman and the Chairman of China Evergrande Group, one of the largest real estate developers in China. He is also the founder and chairman of China Evergrande New Energy Vehicle Group. He is considered one of the most successful and influential real estate tycoons in China. He was also listed as China's second-richest man by Forbes in 2020.

However, according to the Bloomberg Billionaire Index, things have changed quite a lot. The latest numbers suggest that he has lost over 93 per cent of his wealth, from $42 billion to around $3 billion currently.

China Evergrande Group, the real estate developer founded and led by Hui Ka Yan, has faced financial challenges in recent years. The company has a large amount of debt, and its cash flow has been affected by slowing sales in the Chinese real estate market. 

In 2019, the company struggled to make debt payments and was in danger of defaulting on its loans. To address these issues, the company has sought to raise funds through asset sales and equity offerings and has also implemented cost-cutting measures. At one point, Hui had to sell some of his houses and private jets to save the company from crippling debt.

Additionally, the company has been facing regulatory issues. In 2019, China's National Development and Reform Commission (NDRC) ordered the company to sell off assets worth over $20 billion to reduce its debt burden and improve its financial situation. The company has also been facing an investigation by the China Securities Regulatory Commission (CSRC) over its financial statements, which raised concerns among investors.

However, in 2021, the company reported a strong financial performance, it has reduced its debt and its cash flow has improved. As a result, the stock price of the company has increased, and it has regained some of the trust of investors. 

Now 2023 seems to be the most crucial for the company’s survival. Mr Hui himself said in a New Year message as seen in South China Morning Post (SCMP) that "I believe we can complete our mission of delivery, repay various debts, eliminate the risks, and start a new chapter on survival, as long as all of our work together and never give up on resuming our construction, sales, as well as operations.”

Not just Hui but China's five richest property tycoons have also collectively lost over $65 billion ever since the pandemic began.

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Published on: Jan 22, 2023, 6:43 PM IST
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