Chinese language property magnate loses $1 billion in Evergrande panic

The boss of a Shanghai-based property developer misplaced greater than a billion {dollars} Monday, as fears over the potential collapse of Chinese language actual property big Evergrande despatched panic throughout Hong Kong buying and selling flooring.

Zhang Yuanlin, chairman of Sinic Holdings Group, noticed his web value drop from $1.3 billion Monday morning to $250.7 million by the afternoon, in accordance with Forbes, when his agency was compelled to halt buying and selling in Hong Kong following an 87 p.c stoop in its share worth.

Zhang was featured on Forbes’ Billionaires record of the world’s richest individuals this 12 months and made his fortune in high-rise flats — now extremely weak because the potential collapse of teetering property big China Evergrande sparks panic.

Sinic noticed a sudden sell-off and large improve in buying and selling quantity on its shares within the hours previous to its suspension, which comes simply weeks earlier than it should pay a 9.5 p.c $246 million bond due on October 18, in accordance with Bloomberg.

A spokesperson for Sinic didn’t reply to AFP’s request for remark.

The agency is one in every of many seeing fortunes wiped over investor fears that Evergrande — one in every of China’s largest builders — will default on upcoming curiosity funds this week because it wallows in money owed of greater than $300 billion.

With the property sector estimated to account for greater than 1 / 4 of China’s GDP, there are considerations of a spillover into the home and international financial system.

The disaster has even triggered uncommon protests outdoors the corporate’s workplaces by traders and suppliers demanding their cash — a few of whom declare they’re owed as a lot as $1 million.