He Was China's "Self-Made" Richest Man. Then Evergrande Collapsed : Rashtra News The 63-year-old Xu Jiayin was once China's richest man.Beijing: From rural poverty to real-estate billions, the fortunes of Xu Jiayin mirrored China's runaway economic growth for much of the past two decades but now he is battling to save his Evergrande conglomerate
Liquidation of Evergrande by a Hong Kong court this week piles on the pressure for China to prop up its collapsing property market. Beijing will have to take a call on protecting foreign creditors when homebuyers have stopped purchases. Since real estate is key to the Chinese economy - where households park around three-fourths of their savings and foreign bond holders have pushed enormous credit to developers - some form of taxpayer-led rescue is inevitable.
Judge Linda Chan said it was appropriate for the court to order Evergrande to wind up its business given a "lack of progress on the part of the company putting forward a viable restructuring proposal" as well as Evergrande's insolvency.
For prospective Chinese home-owners who have taken loans and paid the amount to the developers and are awaiting the handover of their homes, the prospect of Evergrande shutting down spells serious concerns. If Evergrande goes bust, they could potentially lose that money.