'Evergrande Chairman Faces "Liquidity Crisis," Sells Shares Worth 411 Billion KRW'

[Asia Economy Reporter Seulgina Jo] Hui Ka Yan (Xu Jiayin), chairman of China Evergrande, a Chinese real estate developer facing a liquidity crisis, has secured cash by selling shares worth 2.68 billion Hong Kong dollars (approximately 411.03 billion Korean won).

Major foreign media outlets including Bloomberg cited the Hong Kong Stock Exchange on the 26th, reporting that Chairman Hui Ka Yan sold 1.2 billion Evergrande shares at an average price of 2.23 Hong Kong dollars per share the previous day. As a result, Chairman Hui's stake decreased from 76.96% to 67.87%.

Evergrande is burdened with debt amounting to about 300 billion US dollars. A source stated that Chinese authorities previously instructed Chairman Hui to use part of his personal assets to repay debts. Accordingly, Evergrande's founder Hui is raising funds by selling three luxury homes and artworks.

Evergrande has failed to pay 82.5 million US dollars in interest on dollar bonds maturing on November 6. Investors are closely watching whether payment can be made by December 6, when the 30-day grace period ends.

On the same day, another major foreign media outlet reported, citing an anonymous source, that the Chinese government has decided to take over Evergrande's football stadium business. Since April last year, Evergrande invested 12 billion yuan in Guangzhou to build the largest stadium capable of accommodating the maximum number of spectators, but construction was halted due to the liquidity crisis. The source said, "The management rights of Evergrande's football stadium have already been transferred to the authorities," and "the authorities are pursuing a plan to sell the stadium to a third party."

This content was produced with the assistance of AI translation services.