FINANCE

The Evergrand founder lost $ 25 billion as the She Crackdown hit the big tycoons


The net worth of Hui Ka Yan, founder of debt-ridden Evergrande Real Estate Group, fell $ 25 billion last year, with President Xi Jinping’s regulatory crackdowns affecting China’s greatest personal fortune.

According to the annual Hurun Wealth List released on Wednesday, Hui’s total wealth has shrunk by about 60 percent to $ 11.3 billion since 2020, making him the 60th richest person in China. He was ranked as the fifth richest person in the country last year and topped the list four years ago.

Zhang Shanshan, a 67-year-old bottled water baron, is the richest man in China with a net worth of just 60 60 billion.

Evergrande has had the most significant damage to China’s government campaign to reduce debt levels and curb property overflows – a key objective of Shir’s recent policy drive to reduce social inequality and promote “common prosperity” as he prepares to start a third term. Power next year.

Evergrande owes more than $ 300 billion to retail investors, suppliers and other lenders and avoided a formal default last week. Over the past year, the group’s shares traded in Hong Kong have fallen more than 80 percent, greatly reducing Hui’s total value.

Xi’s regulatory attack began in November 2020 with the cancellation of Jack Ma’s online finance company, Ant Group’s $ 37 billion initial public offering, and primarily targeted the alleged monopoly abuse at the country’s largest technology companies. Alibaba, Ma’s ecommerce platform, was fined $ 2.8 billion in April for misuse.

Since Ant’s IPO was blocked, the net worth of the mother, who topped the Hurun rich list last year, fell 36 percent to $ 39.6 billion. The fortunes of the main pony mother of ant rival Tencent have fallen by almost 20 per cent to $ 49 billion over the same period.

Shares of Chinese technology However, after Jack Ma made his first foreign trip since the Ant IPO defeat in recent weeks, investors are betting that the government is finally relaxing its investigation into the sector.

A ubiquitous figure at previous Davos and other high-profile international conferences, Jack Ma has made a few brief public appearances in China this year.

The intensity of the recent crackdown on property, technology and education groups has dampened investors ’appetite for Chinese corporate shares and bonds. But Rupert Hughesworth, the founder of Hurun, argued that despite the relentlessly negative headlines, China’s private sector was extremely dynamic and another 7 307 billionaire emerged last year.

“Half of this year’s list is new faces compared to five years ago, which shows the dynamics of China’s private sector,” Hughesworth said. “New sectors and business models are changing the landscape,” he added, pointing to the growing wealth of new-energy tycoons in electric cars, solar and mining.

The Hurun Rich List tracks the fortunes of 2,918 people worth at least Rmb2bn (310m). In the past year, the total wealth of those on the list has risen 24 percent to $ 5.3 trillion.



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