- Hui Ka Yan was once the second-richest Asian, and richest businessman in China
According to the Bloomberg Billionaire Index, Chinese real estate magnate Hui Ka Yan has reportedly lost 93 percent of his wealth as his company Evergrande is witnessing collapse – defaulting on $300 billion in debts. Yan’s personal fortunes have plummeted from $42 billion to just $3 billion now.
According to CNN, Yan used his personal wealth to back his company. That includes selling his houses and private jets.
Analysts say that the collapse of Evergrande could further trigger wider risks for China’s real estate market – impairing homeowners, and financial ecosystem in a broader manner. As various reports, real estate and related industries account for as much as 30% of China’s GDP.
Hui and Evergrande, however, kicked off 2023 on a hopeful note. In an email seen by AFP, chairman Hui Ka Yan told the staff that,
“2023 is a key year for Evergrande to fulfil its corporate responsibility and do everything in its power to ensure the delivery of construction projects”. says Yan
“As long as everyone at Evergrande pulls together, never gives up, (and) works hard… we will certainly be able to complete the tasks of guaranteeing deliveries, repaying all kinds of debts, and resolving risks,” also said Yan
This is not the first time that such a scenario is happening in China. Last year in July, Yang Huiyan, Asia’s fomrer wealthiest woman lost over half of her fortune amid China’s real estate crisis. The billionnaire businesswoman who holds majority shareholding in China’s biggest property developer Country Garden – witnessed 52 percent drop in her wealth i.e. from $23.7 billion to $11.3 billion a year ago.
