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Shuli Ren

Evergrande’s Endgame Choices: Partnerships, IPOs, Fire Sale

The conglomerate is running out of time and its founder must come up with new sources of funding or risk losing large parts of his empire.

Will Hui have to sell off his empire?

Will Hui have to sell off his empire?

Photographer: Bloomberg/Bloomberg

China Evergrande Group’s billionaire founder Hui Ka Yan has a big problem. With the property developer’s dollar bonds trading at distressed levels, a restructuring of his real estate conglomerate seems almost inevitable. 

It’s not as if Hui hasn’t undertaken major makeovers before — rapidly. Within days of a cash crunch last September, he convinced his long-time investors to turn into equity 86.3 billion yuan ($13.3 billion) worth of hybrid securities, thereby averting a debt crisis. The only surgery carried out was on Evergrande’s capital structure. Hui’s actual business empire remained intact and he continued to sit in the driver’s seat.