A Chinese billionaire who was among the nation’s richest and most powerful businessmen has seen a 93% decline in his wealth. Hui Ka Yan, the chairman of the China Evergrande Group, was once the second-richest person in Asia with a net worth of $42 billion. CNN reported that according to the Bloomberg Billionaire Index, his wealth has decreased to $3 billion.
With liabilities totaling $300 billion, Evergrande is the nation’s most indebted developer and has been at the center of China’s real estate issues since 2021. The billionaire ultimately had to sell his homes and private planes in order to save his business.
According to the publication, the company has about 200,000 employees, generated more than $110 billion in sales in 2020, and owns more than 1,300 developments spread across more than 280 cities. According to CNN, the company also didn’t deliver its preliminary debt restructuring plan last year, raising concerns about its future.
Mr. Hui’s wealth is declining, and he is also becoming more politically isolated; the latest indication comes from the Chinese People’s Political Consultative Conference (CPPCC). Government representatives and the biggest names in business make up the elite CPPCC.
The businessman had joined CPPCC in 2008 and its exclusive standing committee of 300 members in 2013. He was, however, instructed last year not to go to the convention because, according to the Sydney Morning Herald, his property empire was the biggest victim of the country’s credit crunch. Additionally, he is no longer included in the most recent list of people who will make up the CPPCC for the ensuing five years.
“The CPPCC position is comparable to an honorary reward China gives to loyal businesspeople who contribute to the nation. It’s not at all surprising that real estate moguls like Hui, whose excessive borrowing caused problems in the industry, are not on the list “Bloomberg was informed by Willy Lam, an adjunct professor at the Chinese University of Hong Kong and the author of several books on Chinese politics.
The real estate mogul had stated in a New Year’s message seen by Hong Kong-based newspaper South China Morning Post that “2023 is a crucial year for Evergrande Group to fulfill its duty as an enterprise and deliver projects in every possible way” (SCMP).
As long as we all work together and never give up on resuming our construction, sales, and operations, he had said, “I believe we can complete our mission of delivery, repay various debts, eliminate the risks, and start a new chapter on survival.”
The Bloomberg Billionaire Index also revealed that the top five real estate developers in China together lost approximately $65 billion during the previous two years.
