Evergrande is China’s most indebted real estate developer, with $300 billion in liabilities, and has been in default since 2021. The billionaire has tried to inject financial vitality into the company through his own personal wealth, but it hasn’t been enough.
The real estate company has 200,000 employees, grossed 11 billion in sales in 2020, and owns more than 1,300 developments in 280 cities in China. It’s huge, but so is your debt. What is worrying about this financial situation is because the real estate and related industries represent up to 30% of Chinese GDP and a collapse of this sector could have a systemic impact on the Asian country.
Hui Ka Yan (64 years old), however, said at the beginning of January that Evergrande will overcome the risks it faces and pay off its debt in 2023. This despite having failed to present a restructuring plan at the end of 2022.
There are currently thousands of undelivered apartments sold, which is why the mogul has asked his employees to re-engage with building and marketing the developments, hoping to see a renaissance for Evergrande.