The fortunes of China's "ultra affluent," especially those who amassed their wealth in the formerly booming real estate market, have suffered significantly in recent years. According to the Bloomberg Billionaires Index, China Evergrande Chairman and real estate magnate Hui Ka Yan's net worth has dropped a startling 93%.
Yan's wealth has fallen from $42 billion to just $3 billion, despite him formerly being ranked as the second-richest person in Asia.
The Fall of China Evergrande
China Evergrande, of which Yan is the chairman, is now China's most indebted investor with $300 billion in liabilities and at the center of the nation's real estate troubles.
As of 2021, Yan has been using his personal wealth to keep the company afloat as it teeters on the brink of bankruptcy. He has sold off villas and private jets, but these efforts have been insufficient and the company defaulted on US dollar bonds in December 2021 after months of trying to raise funds to pay off creditors, suppliers, and investors.
The company's failure to fulfill the terms of its initial debt restructuring plan last year raised additional doubts about its survival. The organization, which had over $110 billion in sales in 2020 and employed almost 200,000 people, also had more than 1,300 sites spread across more than 280 locations.
Even yet, Evergrande said that its offshore restructuring process has made "good progress," but stressed that it is still working with creditors and consultants to perform a due diligence on the business.
The Fall of Elon Musk
Hui Ka Yan is not alone in experiencing the massive destruction of his wealth recently.
Elon Musk, CEO of Tesla, SpaceX and Twitter, became the first person to lose $200 billion in wealth. Most of Musk's fortune is tied to Tesla, whose shares have fallen by 65 percent in 2022. The "very rich" in China have had a terrible few years, especially those who made their riches in the once-hot real estate market.
Hui Ka Yan, the chairman of China Evergrande and a real estate tycoon, has suffered a 93% decrease in his net worth, and with $300 billion in liabilities, the company is now the most indebted investor in China. Yan has supported the company with his personal money, but because it hasn't carried out its initial debt restructuring plan, there are worries about its future.
Meanwhile, Elon Musk, CEO of Tesla, SpaceX and Twitter, became the first person to lose $200 billion in wealth due to a decline in Tesla shares.