Last Update: January 23, 2023, 10:44 AM IST
He was also a member of China’s top Chinese People’s Political Consultative Conference (CPPCC).
It is speculated that the Chinese government started its Common Prosperity Policy to redistribute wealth, which cracked down on many industries.
Hui Ka Yan, the head of Chinese real estate billionaire Evergrande Group, has seen his income drop. From being the second richest man in Asia with $42 billion, his net worth has gone up to $3 billion, reports the Sydney Morning Herald. As reported by the Bloomberg Billionaires Index, Hui Ka Yan lost 93% of his income. The head of the Evergrande Group was known for bridging the gap between the business world of the Chinese elite and the country’s political power centres.
He was also a member of China’s top Chinese People’s Political Consultative Conference (CPPCC). The conclave is the upper house of the Politburo of the Chinese Communist Party, a 300-member elite group comprising government officials and business tycoons as its members. However, with their defeat, they were dropped from the group for the next five years. Hui was banned from attending the annual convention of the CPPCC to be held in March 2022.
Hui Ka Yan is one of China’s largest and most indebted real estate developers, according to the Bloomberg Billionaires Index. The firm has invested in over 800 projects across 280 cities in China and beyond. Economists and financial market experts suggest that the future of these projects looks bleak and may default in the coming years. In addition, Hui Ka Yan is struggling to service $300 billion in liabilities.
Now, what is the reason for Evergrande Group’s crisis? According to the report, it is speculated that the Chinese government launched its Common Prosperity Policy to redistribute wealth, which has cracked down on many industries. As reported by CNN, Hui has sold personal assets worth more than 7 billion yuan ($1.1 billion) to keep his troubled company afloat. Furthermore, it has become one of the most indebted developers with $300 billion in liabilities.
In a conversation with the Hong Kong-based newspaper South China Morning Post, Hui Qian said, “I believe we can fulfill our mission of delivery, repay various debts, eliminate risks and survive.” But we can start a new chapter, as long as we all work together and never give up to restart our manufacturing, sales and operations.
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