In recent weeks, the Chinese housing giant Evergrande Group has been repeatedly compared to the American Lehman Brothers – the financial leader who unleashed the crisis in 2008. Despite the record accumulated debts of the Asian company, it still turns out not so bad to be its leader.
Since the beginning of the year, the shares of Evergrande, for which many predict an impending collapse, have lost 80% of their value. However, its president, Hui Ka Yang, remains one of the richest people in China. And he is likely to maintain this position even if the company goes bankrupt under the weight of its more than $ 300 billion debt.
Hui Ka Yang’s current net worth is $ 11.5 billion. Forbes estimates that $ 8 billion of this was paid to the president in cash in the form of dividends from Evergrande’s listing on the stock exchange in 2009.
Moreover, the company’s liabilities have grown every year since its initial public offering. However, during the same period, it did not miss the payment of dividends to its shareholders, except in 2016 alone.
The $ 300 billion debt giant that has become a ticking bomb for China’s economy
The company, which for decades has been a symbol of China’s rapid growth
And they went mainly in the pocket of one person – Hui Ka Yang, who owns 10.2 billion shares in the company or a share of 77% of it. Evergrande paid dividends of 1.13 yuan or $ 0.17 per share in 2017 and another 1.4 yuan or $ 0.22 in 2018. In those years alone, its president has added more than $ 4 billion to his fortune.
Meanwhile, over the same period, the company’s debts rose from 179 billion to 243 billion dollars. And by the end of 2020, they already exceed $ 300 billion. For comparison, in 2009 the company’s liabilities amounted to 7.7 billion dollars.