Six super-wealthy families in China’s real estate sector have seen unexpected declines in their assets as the shares they hold fell sharply.
China Business News pointed out that six large real estate families have the highest total assets in the industry. They are included in the top 50 of the Hurun Global Rich List, including the Wang Jianlin family of Wanda Group, the Xu Jiayin family of Evergrande, Yang Huiyan family of Country Garden, Sun Hongbin family of Sunac, Wu Yajun family of Longfor Properties, and Xu Rongmao family of Shimao Group.
Their wealth dropped significantly in 2021 as these Chinese property giants saw their market value evaporate a total of more than HK$300 billion (about US$39 billion).
Evergrande shares, held by Xu Jiayin and his wife, fell 10% last year as the firm’s market value has shrunk.
Wang Jianlin’s family suffered losses of HK$35 billion (US$4.5 billion) to HK$45 billion (US$5.8 billion).
Sunac’s market value plummeted more than 60% last year, and Shimao Group’s share prices also fell more than 70%.
Taipei Times reported that, except Wanda Commercial Properties of Wanda Group, which announced its privatization and delisting from the Hong Kong stock market in 2016, listed developers on this stock exchange averaged a loss of 20-30% market value.
The decline reflects the impact of Beijing’s regulation on the real estate industry and the current debt crisis.