Billionaire Suffers Massive Financial Loss, Losing Over 90% of Fortune

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In recent years, China’s wealthiest individuals, particularly those who made their money in the country’s once-thriving real estate market, have struggled to maintain their wealth.

According to the Bloomberg Billionaires Index, the net worth of Hui Ka Yan, Chairman of China Evergrande, a real estate development company, has dropped significantly, by almost 93%. This means, that Hui’s fortune, which was once the second-highest in Asia, fell from a peak of $42 billion in 2017 to approximately $3 billion.

China Evergrande, a real estate development company, is China’s most indebted developer, with a staggering $300 billion in liabilities. The company has been at the center of China’s real estate troubles since 2021. Hui Ka Yan, also known as Xu Jiayin, the company’s chairman, has been using his personal wealth to support the company by selling off his houses and private jets.

Despite Hui’s efforts to raise cash, China Evergrande, the company defaulted on its US dollar bonds in December 2021 after struggling to repay creditors, suppliers, and investors. The company also failed to present a preliminary debt restructuring plan, raising further concerns about its future. Evergrande is a massive company, with around 200,000 employees, generating over $110 billion in sales in 2020, and owning more than 1,300 developments in over 280 cities. Analysts have long warned that a collapse of Evergrande could have severe consequences for China’s property market, affecting homeowners and the broader financial system. Real estate and related industries account for up to 30% of GDP.

Recently, not only Hui Ka Yan but also other individuals have experienced significant losses in their wealth. Elon Musk, CEO of Tesla, SpaceX, and Twitter, has reportedly become the first person to lose $200 billion in wealth, according to a report by Bloomberg last month. The majority of Musk’s wealth is tied to Tesla, which saw its stock drop by 65% in 2022.

Capiz News
Capiz Newshttps://capiz-news.com
Online News Site from the province of Capiz in the Philippines.

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