Hui Ka Yan, a Chinese real estate billionaire saw a drop in net worth from $42 billion to $3 billion.
Hui Ka Yan is the Chairman of China Evergrande Group, one of the largest real estate developers in China. He also founded the China New Energy Vehicle Group and is its Chairman.
The business tycoon and China’s second richest person (Forbes 2020) lost 93% of his fortune according to the Bloomberg Billionaire Index.
The real estate company is facing challenges in recent years as there has been a slowdown in the real estate market in China.
The company struggled to pay its debts and was in danger of defaulting on its loans. The company had also been facing regulatory issues as it was asked to sell off assets worth $20 billion to reduce its debt by China’s National Development and Reform Commission as reported by Business Today.
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The billionaire is reported to have sold some of his houses and private jets to rescue the company from its drowning debt.
The real estate company reported strong financials in 2021. It reduced its debt and improved cash flow, increasing the stock price, and regaining some investor confidence as reported by Business Today.
The Bloomberg ratings indicate that five of China’s richest property tycoons have lost over $65 billion since the pandemic began, excluding Hui Ka Yan.
The covid lockdowns and the ‘China plus one' policy of the world is denting the real estate markets as growth is saturating in the country.
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