Inside the downfall of China Evergrande Group, embattled property developer theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
SHANGHAI/HONG KONG, Aug 31 - In the beginning, Hui Ka
Yan followed a simple formula. Borrow to buy land. Sell homes on
the site before they are built. Use the cash to pay.
How Evergrande s collapse foreshadowed China s property crisis reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
In the beginning, Hui Ka Yan followed a simple formula. It transformed Hui, a former steel industry employee from a rural village, into China’s richest man. But as Evergrande grew increasingly laden with debt, the company resorted to ever-more unorthodox strategies to generate funds.
For two decades, starting in the mid-1990s, this approach was enormously lucrative as Chinese home prices soared. It transformed Hui, a former steel industry employee from a rural village, into China s richest man. And it turned his company, China Evergrande Group, into a vast real-estate empire. But as Evergrande grew increasingly laden with debt, the company resorted to ever-more unorthodox strategies to generate funds.