Did the founder of Evergrande flee his assets abroad?
Hui Ka Yan, president of the Chinese real estate development company Evergrande, which has serious liquidity and debt problems, was investigated on suspicion of transferring assets out of the country.
According to the news from the American financial journalist Wall Street Journal, sources said that Evergrande Group is investigating whether billionaire founder Hui Ka Yan is trying to transfer his assets abroad.
THE CRISIS BECAME COMPLEX
Evergrande has been trying for some time to obtain approval from creditors to restructure its debts abroad. The process was complicated last week when the company announced an investigation into its main unit in China.
Trading in the company’s shares was temporarily suspended on Friday after it became known that the chairman of the company’s board of directors was in police custody.
THE DEBT CRISIS IS GROWING
In Reuters news last week it was reported that a group of creditors outside the country planned to participate in a court petition for the company’s liquidation if it did not present a new debt restructuring plan before the end of October.
With more than $300 billion of debt, almost equivalent to the gross domestic product (GDP) of Finland, Evergrande has become the epitome of the debt crisis in the real estate sector, which represents almost a quarter of Finland’s economy. China. (REUTERS, SÖZCÜ)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
