China's 2nd Richest Tycoon's Wealth Slashed to One-Fourteenth

Chinese Real Estate Developer Evergrande (恒大) Chairman Xu Jiayin's Wealth Evaporates by 93%

Chairman Xu Jiayin of Evergrande Group (center in the photo) [Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Bloomberg reported on the 19th (local time) that the wealth of Xu Jiayin, chairman of the Chinese real estate development group Evergrande (恒大·Hengda), which is in default, has evaporated by as much as 93%.

According to Bloomberg's billionaire index, Chairman Xu's current wealth is estimated at $3 billion (approximately 3.693 trillion KRW). At one point, his wealth reached $42 billion (approximately 51.9636 trillion KRW), ranking second in Asia, but it has decreased by 93% along with the crisis of the Evergrande Group.

Earlier, Evergrande Group fell into financial difficulties as the Chinese government tightened regulations on developers to stabilize the real estate market. Subsequently, Evergrande defaulted in 2021 on $22.7 billion worth of offshore bonds and has been suspended from trading since March last year.

As Evergrande Group fell into crisis, Chairman Xu also lost his political influence within China. He had participated in the Chinese People's Political Consultative Conference (CPPCC), a Chinese policy advisory body, since 2008 and was listed on the Standing Committee of the National Committee in 2013. However, he was not invited to last year's annual meeting and was also excluded from the recently announced list of next CPPCC members.

Real estate developers who participated in the CPPCC alongside Chairman Xu have also lost political influence as their companies faltered. Hui Wing Mau, chairman of Simao Group, whose stock trading has been suspended since March, was recently excluded from the CPPCC. Zhang Li, co-founder of Guangzhou Fuli, who was arrested in London on bribery charges, also failed to make the CPPCC list.

Bloomberg stated that along with the Chinese real estate slump, the wealth of the five major figures in the Chinese real estate industry has decreased by $65 billion over the past two years.