{"id":35038,"date":"2021-10-12T07:53:33","date_gmt":"2021-10-11T18:53:33","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=35038"},"modified":"2021-10-12T07:53:33","modified_gmt":"2021-10-11T18:53:33","slug":"can-evergrandes-founder-save-his-real-estate-empire","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/can-evergrandes-founder-save-his-real-estate-empire\/","title":{"rendered":"Can Evergrande\u2019s founder save his real estate empire?"},"content":{"rendered":"

PHOTO: Evergrande founder Hui Ka Yan’s real estate empire is one of the biggest victims of Chinese President Xi Jinping’s efforts to rein in debt-fuelled acquisitions and scale back risk in China’s property market [File: Bloomberg]<\/strong><\/p>\n

Four years after vying with Jack Ma for the title of Asia\u2019s richest man, Evergrande<\/a> chairman Hui Ka Yan\u2019s fortune is plunging and his sprawling real estate empire is on the verge of collapse.<\/p>\n

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It\u2019s a stunning reversal for a man who fought his way from poverty in rural China to build one of the world\u2019s largest property companies. In previous times of trouble, Hui had been able to rely on the help of his tycoon friends and local government support. This time, with $305 billion in liabilities and the company\u2019s asset prices plunging, Hui appears more alone than ever.<\/p>\n

\u201cThere\u2019s no interest to bail him out,\u201d said Desmond Shum, whose book about his dealings with China\u2019s political elites, \u201cRed Roulette,\u201d described how he once went shopping with Hui for a superyacht. \u201cIn the situation he\u2019s in now, I don\u2019t think any political connections will come to his rescue.\u201d<\/p>\n

What happens to Hui is open to question, including whether he will retain ownership of his empire. One of his allies and fellow billionaire Zhang Jindong lost control of the retail arm of his Suning conglomerate when it received a state-backed bailout in July \u2013 partly because he helped Hui out during a tight spot. Other heads of failed companies have met with worse fates, from arrest to execution.<\/p>\n

Hui\u2019s empire is turning into one of the biggest victims of President Xi Jinping\u2019s efforts to curb the debt-fueled excesses of conglomerates and defuse risks in the nation\u2019s housing market. Evergrande and its affiliated companies were built through an aggressive mix of dollar debt issuance, share sales, bank loans and shadow financing \u2013 funding avenues that have been all but cut off. The group now faces at the minimum a debt restructuring, which could be China\u2019s largest ever.<\/p>\n

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Even his long-term backers may be losing patience. Chinese Estates Holdings Ltd., controlled by the family of property mogul and fellow poker pal Joseph Lau, has been selling Evergrande stock and\u00a0said\u00a0it could unload its entire stake.<\/p>\n

Hui remains in charge of the group and was seen publicly at the Communist Party\u2019s 100th anniversary celebration in Tiananmen Square in July,\u00a0illustrating\u00a0the power of his political connections. He met with employees last month, and signed a public statement emphasizing the importance of finishing construction of sold properties.<\/p>\n

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