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Beijing [China]Jan 22 (ANI): Xu Jiayin, chairman of embattled Chinese property developer and Evergrande Group chairman Xu Jiayin, has reportedly seen his fortune drop from $42 billion to $3 billion as the country’s once-hot property market continues to slump. slow down. Sydney Morning Herald (SMH).
Hui, once one of China’s wealthiest and most influential tycoons, bridging business and high-level politics, lost 93 percent of his wealth, according to the Bloomberg Billionaires Index.
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Evergrande’s chairman, who was once the second richest man in Asia, has seen a sharp decline in his net worth. Moreover, the Hui ethnic group is becoming more and more isolated politically. The latest signal comes from the National Committee of the Chinese People’s Political Consultative Conference.
The CPPCC is an elite group of government officials and prominent business figures. Xu has reportedly been a member of the political advisory body since 2008 and a member of its 300-member elite standing committee since 2013, but he was told not to attend last year’s annual general meeting as his real estate empire became the subject of a national credit crunch. biggest victim. SMH.
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Now he’s not even on the updated list of CPPCC members for the next five years released on Wednesday.
The new CPPCC members will travel to Beijing in March to participate in the CPPCC’s 14th National Committee, where they will discuss everything from political and social issues to new laws and national development.
“The role of the CPPCC is like an honorary award that China gives to business people who are loyal to their contributions to the country,” said Lam Wo-li, an adjunct professor at the Chinese University of Hong Kong and author of several books on Chinese politics.
Not only Xu, but Xu Yongmao of Shimao Group Holdings Ltd., Zhang Li, co-founder of Guangzhou R&F Properties Co. Ltd., and Xu Jiankang of Powerlong Real Estate Holdings, are no longer members of the CPPCC, SMH reported.
The move reflects a shift in attitudes toward developers in China, many of which have fallen out of favor amid a years-long property crisis that has threatened the broader economy.
President Xi Jinping’s “common prosperity” initiative to redistribute wealth has led to a crackdown in several industries. For the real estate sector, strict “three red lines” policies to curb debt have exacerbated a crisis affecting banks, trust companies and millions of homeowners.
In addition, under the impact of the continuous and stringent “zero new crown” policy, coupled with severe regulatory crackdowns in the past two years, the wealth of China’s richest plummeted last year, the largest decline in more than two decades.
“It’s not surprising that a real estate tycoon like Xu who caused trouble in the real estate industry with excessive leverage was excluded,” Lim said.
Evergrande will default on its US dollar bonds for the first time in 2021, with more than US$16 billion in outstanding US dollar bonds.
After missing several self-imposed deadlines to submit an initial restructuring blueprint, the company this week proposed a restructuring plan with two options, the people said. PricewaterhouseCoopers resigned as its auditor on Monday after the company failed to report its 2021 results, its shares have been suspended for nearly a year.
Shimao is also a defaulter, with trading in its shares suspended since last March. R&F’s Zhang was arrested in London last month on U.S. bribery charges and is now confined to his five-bedroom penthouse after posting a record $16 million bail. Another crisis victim, Bonhams, has seen its market value drop by more than 80% from its 2021 peak, SMH reported.
China’s top five real estate tycoons have collectively lost about $65 billion over the past two years, according to the Bloomberg Wealth Index. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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