The Chinese real estate group Evergrande is sitting on a huge debt mountain of 300 billion dollars. This is also noticeable in boss Hui Ka Yan’s wallet. Only a fraction of his fortune is left.
This article first appeared on ntv.de
The once flourishing Chinese real estate market is in a serious crisis. The country’s super-rich are increasingly feeling the effects of this. The boss of the tumbling real estate group China Evergrande, Hui Ka Yan, has lost almost 93 percent of his net worth, according to the “Bloomberg Billionaires Index”. Hui was once the second richest person in Asia. In 2017, his net worth was $42 billion. He now has only $3 billion left. Chinese real estate giant Evergrande is saddled with $300 billion in debt. He is thus at the center of the real estate crisis in China after he was unable to service foreign liabilities worth $22.7 billion last year.
Evergrande defaulted on its US dollar bonds in December 2021. The company had previously struggled for months to raise cash to pay back creditors, suppliers and investors. Over the past year, the company has defaulted on its tentative debt restructuring plan, raising further concerns about its future.
Evergrande boss Hui is not the only one who has lost a lot of money
Hui even used his personal wealth to prop up his ailing business, selling his homes and private jets. But that was far from enough. Analysts have long feared that Evergrande’s collapse could trigger further risks to China’s real estate market, hurting homeowners and the financial system in general. The real estate market and the related industries account for up to 30 percent of the gross domestic product of the second largest economy in the world.
Evergrande boss Hui is far from the only one who has recently lost a lot of money. Just a few days ago, Tesla founder Elon Musk broke the world record for the largest loss of personal wealth in history. According to Bloomberg, Musk recently lost around $200 billion. No one before him has managed to do that.
Lost places in China
Where world-class attractions rot
According to the report, Musk was worth about $340 billion as of November 2021. In the meantime, it has melted down to around 137 billion dollars. The record loss can be explained by the sharp fall in Tesla shares this year. The paper of the electric car manufacturer lost about 65 percent in value.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
