The chairman of Chinese property giant Evergrande has lost nearly 93% of his net worth. Hui Ka Yan was once the second richest person in Asia, but his fortune has shrunk from 42 billion dollars (approximately 38 billion euros) in 2017 to around 3 billion dollars (approximately 2.7 thousand million million euros).
According to CNN InternationalEvergrande is the most indebted real estate in China, with 300,000 million dollars in liabilities, being at the center of the sector’s problems in China since 2021.
Hui Ka Yan used his fortune to support the company, selling houses and private planes. However, this was not enough and Evergrande accumulated debt over the months. Last month, the company did not deliver its preliminary debt restructuring plan.
With some 200,000 employees, Evergrande raised more than ten billion dollars (about nine billion euros) in sales in 2020, and has more than 1,300 properties in more than 280 cities.
Experts have long feared that Evergrande’s collapse could unleash further risks for China’s property market, hurting homeowners and the financial system. In China, the real estate sector and related industries account for about 30% of GDP.
Hui Ka Yan is not the only one who recently lost much of his wealth. Last month, Elon Musk, CEO of Telsla, SpaceX and Twitter, became the first person to lose 200,000 million dollars (about 184,000 million euros).
Source: TSF
