Chinese real estate mogul loses $ 1 billion in panic over real estate crisis

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The real estate company is one of the many fortunes that have been erased by investor fears

Hong Kong:

The boss of a Shanghai-based real estate developer lost more than $ 1 billion on Monday, as fears over the potential collapse of Chinese real estate giant Evergrande caused panic in Hong Kong trading floors .

Zhang Yuanlin, chairman of Sinic Holdings Group, saw his net worth plummet from $ 1.3 billion on Monday morning to $ 250.7 million in the afternoon, according to TBEN, when his company was forced to suspend its operations. activities in Hong Kong following an 87% drop in its share price. .

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Zhang was on TBEN’ list of the world’s richest people billionaires this year and made his fortune in high-rise apartments – now highly vulnerable as the possible collapse of crumbling real estate giant China Evergrande sparks the panic.

Sinic experienced a sudden sell-off and massive increase in trading volume in her shares in the hours leading up to her suspension, just weeks before she was due to pay a $ 246 million 9.5% bond due on the 18th. October, according to Bloomberg.

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A spokesperson for Sinic did not respond to TBEN’s request for comment.

The company is one of many people seeing fortunes erased by investor fears that Evergrande – one of China’s biggest developers – will default on upcoming interest payments this week as it is drowning in debt of over $ 300 billion.

With the real estate sector estimated at more than a quarter of China’s GDP, there are fears of an overflow into the national and global economy.

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The crisis has even sparked rare protests outside company offices by investors and vendors demanding their money – some of whom claim they are owed up to $ 1 million.

(Except for the title, this story was not edited by The Bharat Express News staff and is posted Platforms.)

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