Hui Ka Yan is a Chinese businessman who held the title of Asia’s richest man, four years ago, and is currently a well-known real estate industrialist for his company Evergrande. His net worth is presently sitting at a total of $18.5 billion USD but has consequently decreased a sum of $3.35 billion USD within just this past week; not to mention a 26% drop in his company. With the ‘real estate tycoon’s net worth continually decreasing in value it can only be the meaning of a negative result within his everyday financial decisions.
As of last year, Asia’s former richest man was known to have an incomprehensible amount of debt settled at $301.6 billion USD that has only been increasing as time passes. Over this past year alone this pile of unwanted stress has sprouted another 5% higher as the 62-year-old man continues to grapple with the trials that come in getting rid of it. Shen Chen, a representative partner at Shanghai Maoliand Investment Management, stated that she truly believes “Evergrande’s debt crisis is accelerating” at a pace that the industry is not prepared for. Chen made a valid point to back up her claim when reasoning, “The company is sure to run into problems because it doesn’t have access to new financing, and it can’t dispose of assets in a fast enough manner to raise funds either.”
Investors are even starting to get cold feet when putting a chunk of their money into the company as there have been a few that are “demanding immediate repayments” in order for them to go fully through with their investment. The main worry that investors are currently facing when putting their finances into this business is if “Evergrande is straightforwardly swapping one form of debt for another;” leaving it a mystery if they will be repaid in full or even with anything at all. It seems as if the Chinese tycoon has already done everything in his power to try and convince investors that they are safe when choosing Evergrande, but by the looks of things, his past mistakes just may be enough for his potential clients to pull the plug and retreat to another form and place of investing.