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China property
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Tycoon makes executives sign pledges to assure buyers that Evergrande can deliver homes even with US$305 billion of debt

  • Hui Ka-yan appeared in the centre of a photograph with Evergrande’s senior executives to sign a guarantee to deliver the company’s projects to customers
  • The signing of the delivery pledge was linked with a dozen of Evergrande’s offices across mainland China

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Hui Ka-yan (first right), founder of China Evergrande Group, chairing a conference call with senior executives of the property developer via conference call on 1 September, 2021. Photo: Handout
Pearl Liu

Hui Ka-yan, one of China’s wealthiest tycoons and chairman of the world’s most indebted real estate developer, made his first public appearance since July to assure the public that China Evergrande Group was able to complete its property projects.

Hui, also known as Xu Jiayin in mainland China, appeared in the centre of a photograph with Evergrande’s senior executives, where eight vice-presidents signed a guarantee to deliver the company’s projects to customers, according to a September 1 blog post on the company’s official social media account on WeChat.

“Everyone in the company, led by chairman Hui, has made the pledge,” the Shenzhen-based company said. “We are determined to ensure the quality of our construction, and make sure that we deliver quality projects in quantity at full stretch and by any means possible.”

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The social media post followed Hui’s warning on Tuesday that Evergrande, owing a record 1.97 trillion yuan (US$305 billion) in debt, loans and contractual obligations to suppliers, faced risks of defaults and legal action. The company’s interim profit fell 29 per cent to 10.49 billion yuan, as revenue declined 17 per cent to 222.7 billion yuan, Evergrande said. Its electric car-making subsidiary published a first-half loss of 4.8 billion yuan on the heels of a US$75 billion plunge in market capitalisation, which puts its production debut further beyond reach.
Hui Ka-yan (centre) attending a signing ceremony with his senior executives, pledging to deliver the projects undertaken by the China Evergrande Group, to customers. Photo: Weibo.
Hui Ka-yan (centre) attending a signing ceremony with his senior executives, pledging to deliver the projects undertaken by the China Evergrande Group, to customers. Photo: Weibo.
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“The [Chinese] government cares a lot about ensuring that homes that have been sold are actually delivered to customers,” said Dai Ming, a fund manager at Huichen Asset Management in Shanghai. “Failure to deliver would cause public outcry and affect social stability. Evergrande now has to prioritise its delivery.”

The property industry has come under particular scrutiny as the ruling Communist Party marks its centenary and prepares to head into a crucial conclave process to select its next crop of leaders. The housing ministry on Tuesday announced an unprecedented move to cap urban rents to rein in runaway housing costs and ensure affordability remains within reach.
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