Once known as the richest man in China and second-richest person in all of Asia, chairman of embattled real estate developer China Evergrande Group – Hui Ka Yan (also known as Xu Jiayin) – has taken a painfully considerable hit to his net worth.
Sustaining losses nearing 93% across the past few years, according to the Bloomberg Billionaires Index, the renowned businessman and Communist Party secretary’s fortunes have dwindled from a peak of US$42 billion (AU$60 billion) to just US$3 billion (AU$4.3 billion). And yes, we understand that’s a pretty egregious use of the word “just.” Where did it all go wrong?
As some of you may recall learning, Evergrande has been a major source of China’s real estate woes since 2021; currently the nation’s most indebted developer with an almost-inconceivable US$300 billion (AU$430 billion) in liabilities.
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Last year, after the sprawling empire failed to deliver a preliminary debt restructuring plan in response to defaulting on its US dollar bonds (December 2021), there were widespread concerns about what implications the company’s very possible collapse would have upon the Chinese economy and, in turn, the world economy.
Similar to Elon Musk – who himself has lost more money than anyone in history thanks to a tumultuous 2022 – Hui Ka Yan’s net worth is largely tied to the China Evergrande Group stock price (OTCMKTS: EGRNF), which has steadily taken a beating since the first signs of trouble surfaced. Trading at US$3.99 on September 2020, it now sits below US$0.10.
It also doesn’t help that Hui Ka Yan has been selling off his personal assets in a desperate bid to prop up the struggling behemoth. Straight down the drain.
According to The Sydney Morning Herald, the five richest property tycoons in China have collectively lost approximately US$65 billion (AU$93 billion) over the past two years alone.
