In just six years, the wealth of Chinese billionaire Hui Ka Yan has shrunk by as much as 93 percent, CNN reports. Such a significant decrease is related to the crisis on the Chinese real estate market and the financial problems of the company managed by the businessman.
As recently as 2017, Hui Ka Yan boasted a net worth of $42 billion and the title of the second richest man in China. Although the businessman is still a billionaire, the wealth of his wallet has significantly diminished over the past six years. Currently, the Chinese has “only” three billion dollars. This means that he lost as much as 93 percent. the value of your assets.
Evergrande debt bill
Such a significant decrease is related, among others, to the situation of the company managed by Hui Ka Yan. The businessman is the president of the Evergrande development company, which in 2021 alerted about its serious financial problems and astronomical debt. The company’s unpaid liabilities are estimated at as much as $300 billion. For the critical situation of the company, Hui Ka Yan had to answer with his own assets. In response to the appeal of the Chinese authorities, the billionaire began selling off his assets. Luxurious mansions and modern private jets have gone under the hammer.
However, this is only a drop in the ocean of needs. In 2021, Evergrande failed to pay international investors the interest owed on its dollar bonds. Concerns about the company’s future grew even more a year later when the company revealed its initial debt restructuring plan. “Analysts have long feared that the collapse of Evergrande could trigger a huge crisis on the Chinese real estate market. The sector is responsible for as much as 30 percent of GDP China,” writes CNN.
A record drop
CNN points out that Hui Ka Yan is not the only billionaire who has recently lost a significant amount of his wealth. The record belongs to Elon Musk, until recently the richest man in the world. In just a dozen or so months, Musk’s fortune has shrunk by as much as $200 billion. The founder of Tesla, however, is still the second richest man in the world.
Main photo source: Bobby Yip / Reuters / Forum