Hong Kong:
The boss of a Shanghai-based house developer lost more than a billion dollars Monday, as fears more than the prospective collapse of Chinese actual estate giant Evergrande sent panic across Hong Kong trading floors.
Zhang Yuanlin, chairman of Sinic Holdings Group, saw his net worth drop from $1.3 billion Monday morning to $250.7 million by the afternoon, according to Forbes, when his firm was forced to halt trading in Hong Kong following an 87 % slump in its share value.
Zhang was featured on Forbes’ Billionaires list of the world’s richest folks this year and made his fortune in higher-rise apartments — now hugely vulnerable as the doable collapse of teetering house giant China Evergrande sparks panic.
Sinic saw a sudden sell-off and enormous raise in trading volume on its shares in the hours prior to its suspension, which comes just weeks prior to it need to spend a 9.5 % $246 million bond due on October 18, according to Bloomberg.
A spokesperson for Sinic did not respond to AFP’s request for comment.
The firm is one of lots of seeing fortunes wiped more than investor fears that Evergrande — one of China’s largest developers — will default on upcoming interest payments this week as it wallows in debts of more than $300 billion.
With the house sector estimated to account for more than a quarter of China’s GDP, there are issues of a spillover into the domestic and worldwide economy.
The crisis has even triggered uncommon protests outdoors the company’s offices by investors and suppliers demanding their income — some of whom claim they are owed as considerably as $1 million.
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