China Evergrande's billionaire boss goes from power circles to police surveillance
HONG KONG - Mingling with power brokers at celebrations to mark the centenary of the Chinese Communist Party on July 1, 2021, a beaming Hui Ka Yan showed no signs that his company, ChinaHui, wearing a navy-blue suit and open-neck shirt, looked relaxed as he stood on a podium overlooking the festivities in Tiananmen Square, an invitation many considered an official show of support for the billionaire businessman.
A person close to Evergrande said Hui had stopped contacting staff over the past few days, while an industry source said he had become totally inaccessible. Both of them declined to be identified as they were not authorised to speak to the media. The company, which has been seeking creditor approval for an offshore debt restructuring plan, said on Sunday it was unable to issue new debt due to an investigation into its main China unit, further complicating its revamp proposal.
Under Hui, the property developer expanded aggressively by raising loans to support its land-buying sprees and selling homes at lower margins for quick turnover. Evergrande grew to achieve 700 billion yuan in annual sales by 2020. He also set ambitious targets; when questioned by investors and reporters in the past decade about his highly leveraged projects, Hui said that Evergrande's high turnover and asset value were sufficient to cover its debts.Hui did not shy away from new ventures, especially in support of China's larger goals. He dabbled in electric cars and soccer, both a passion of Chinese President Xi Jinping.
Cheng injected $150 million into Evergrande a year before its 2009 IPO in Hong Kong, according to Evergrande's listing prospectus, helping it through a crunch during the financial crisis following its aggressive expansion,
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