Asia's 2nd Richest Person Suddenly Loses 98% of Wealth in 6 Years

Chairman Xu Jiayin of Evergrande Group, a major private real estate company in China facing bankruptcy risk [Image source=Yonhap News]

Xu Jiayin, chairman of Evergrande (恒大), which became a symbol of the Chinese real estate crisis after falling into default, has lost his billionaire status. Xu was once considered the second richest person in Asia.

According to the Bloomberg Billionaires Index on the 25th, Xu's wealth, which had risen to $42 billion (about 56.5 trillion KRW) in 2017, ranking him as Asia's second richest, has plummeted by 98% to $979 million. Typically, a billionaire is defined as an individual with assets exceeding $1 billion.

The day before, Evergrande's stock price on the Hong Kong Stock Exchange plunged 86% since trading resumed at the end of August, closing at HK$0.24 (about 41.3 KRW).

His wealth is likely to decrease further. Evergrande, the world's most indebted company, is facing a court hearing in Hong Kong on the 30th regarding a liquidation lawsuit amid the absence of a clear restructuring plan. If a liquidation order is issued, liquidators will be appointed to convert Evergrande's assets into cash.

Jonathan Leitch, a lawyer at Hogan Lovells in Hong Kong, said, "Creditors will eventually own the company, and shareholders will disappear. However, if Xu remains to oversee the restructuring, he may retain some shares as an incentive."

With his assets shrinking, Xu has also lost his freedom. He is currently in custody. Evergrande Group recently disclosed that Xu has been subjected to "compulsory measures," indicating detention by authorities on criminal charges.

He is also reported to have divorced his wife, Ding Yumei. In an August disclosure, Ding was listed as a "third independent party," implying divorce or property division. Reports suggest Ding divorced Xu last year and disappeared after leaving Hong Kong at the end of July, with some speculating it might be a sham divorce. Since Evergrande's listing in 2009, Ding has owned a 6% stake in Evergrande through a British Virgin Islands entity.

Riding the boom of China's real estate development for over a decade, Evergrande enjoyed prosperity until the Chinese government launched extensive real estate regulations in 2020, leading to a liquidity crisis and default in December 2021.

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