Logo of Phnom Penh Post newspaper Phnom Penh Post - Beijing urges Evergrande’s boss to repay with own cash

Beijing urges Evergrande’s boss to repay with own cash

Content image - Phnom Penh Post
Xu Jiayin was once China's richest man with a fortune worth more than $40 billion but the troubles at Evergrande have shrunk that to less than $8 billion. AFP

Beijing urges Evergrande’s boss to repay with own cash

Chinese authorities have told Evergrande founder Xu Jiayin, once the country’s richest man, to use his personal wealth to alleviate the embattled company’s debt crisis, according to media reports.

The liquidity crunch at one of China’s biggest property developers has hammered investor sentiment and rattled the country’s crucial real estate market.

Last week, the group unexpectedly paid interest on an offshore bond just before an October 23 deadline, averting a default and giving it a much-needed reprieve.

Evergrande also reported that it had resumed work on more than 10 stalled projects.

But Bloomberg News reported on October 26 that Beijing has pushed Xu – also known as Hui Ka Yan in Cantonese – to dip into his own pocket to help pay off some of the company’s debts, citing people familiar with the matter.

The report said the directive from Beijing came after his company missed an initial bond interest payment due on September 23.

However, it is unlikely that Xu’s personal sacrifice would make much of an impact on Evergrande’s liabilities of more than $300 billion, with Bloomberg reporting his fortune at less than $8 billion.

Xu, 63-year-old, was once the wealthiest person in China, worth more than $40 billion just a few years ago, before Evergrande’s troubles began.

People cited by Bloomberg also said that local governments across China are monitoring the developer´s bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group