China property giant Evergrande replacing its CEO as the company continues its downward spiral. At the same time Chinese billionaires want out (with their money of course).
China’s economy is melting down. This has been going on since President Trump stood up to the paper giant. Despite Biden’s apparent efforts to prop up China, its economy is falling apart.
Earlier this week we reported on tanks in the streets protecting banks from angry customers.
This morning it’s being reported that billionaires in China are ready to leave with their money.
Now, faced with a continued “zero-COVID” future, China’s rich are plotting their escape. Around 10,000 high-net-worth individuals (HNWI) in China are seeking to leave their country this year and could take $48 billion in wealth with them, according to a new wealth migration report by Henley and Partners, an investment migration consultancy. Hong Kong’s numbers also rank high. The special autonomous region of China—which has pursued a similarly strict “dynamic-zero” COVID policy under Beijing’s watchful eye—is home to around 3,000 HNWI who are planning to leave this year, worth $12 billion.
Yahoo Finance is now reporting that Evergrande’s CEO is resigning.
China Evergrande Group, the embattled property developer, said chief executive officer Xia Haijun has resigned.
Siu Shawn, an executive director at the company, will take over, according to a statement Friday. Chief Financial Officer Pan Darong also resigned.Evergrande had been investigating how 13.4 billion yuan ($1.99 billion) of its deposits were used as security for pledge guarantees and seized by banks. The pledge guarantees threatened to wipe out most of the cash holdings at its property-services unit. A filing Friday says that the board requested that Xia, Pan and another executive resign as a result of information about their involvement in arranging the pledges obtained from the preliminary investigation.
The company said its independent investigation committee will issue a report once the probe is finished.
Evergrande at one point was the largest debtor in the world. But now China’s property market is in the tank. The Chinese overbuilt and the money invested in the market was wasted. Evergrande’s founder was once the richest man in China and then in January he was reportedly leaving the company.
China’s economy is a mess. The paper tiger finally is showing its colors.