Mingling with power brokers at celebrations to mark the centenary of the Chinese Communist Party on July 1, 2021, a beaming Hui Ka Yan showed no signs that his company, China Evergrande Group, was facing mounting pressure paying its debts. Hui, wearing a navy-blue suit and open-neck shirt, looked relaxed as he stood on a podium overlooking the festivities in Tiananmen Square, an invitation many considered an official show of support for the billionaire businessman. A month earlier, the Evergrande group chairman had hosted a rare meeting with more than 1,000 suppliers and was once again flanked by the business elite, as he spoke of his debt deleveraging goals.
HONG KONG - Mingling with power brokers at celebrations to mark the centenary of the Chinese Communist Party on July 1, 2021, a beaming Hui Ka Yan showed no signs that his company, China Evergrande Group, was facing mounting pressure paying its debts.
Just two years later, Hui, who founded Evergrande in 1996 in the southern city of Guangzhou, is under police surveillance, Bloomberg News reported on Wednesday, and his property empire is under growing risk of liquidation. Evergrande's total liabilities stand at more than $300 billion, roughly the size of Finland's gross domestic product, and the world's most indebted developer's troubles took a rapid turn for the worse this week.
Under Hui, the property developer expanded aggressively by raising loans to support its land-buying sprees and selling homes at lower margins for quick turnover. Evergrande grew to achieve 700 billion yuan in annual sales by 2020. He also set ambitious targets; when questioned by investors and reporters in the past decade about his highly leveraged projects, Hui said that Evergrande's high turnover and asset value were sufficient to cover its debts.Hui did not shy away from new ventures, especially in support of China's larger goals. He dabbled in electric cars and soccer, both a passion of Chinese President Xi Jinping.
Cheng injected $150 million into Evergrande a year before its 2009 IPO in Hong Kong, according to Evergrande's listing prospectus, helping it through a crunch during the financial crisis following its aggressive expansion,
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