Lam Lung On, chairman of billionaire real estate China Yuzhou Properties, “recently” purchased $3.55 million worth of corporate debt on the after-sales market, Yuzhou said in a statement this morning.
The purchases are being made amid cash flow, transparency and fears of default in China’s real estate industry, which is struggling with high debt and slow sales. Fantasia, a mid-level developer, owes an outage of $206 million as of October 4th (see previous post). I also missed payment.
For more information about buying sheep, click here. The six bonds Ram bought totaled nearly $2.7 billion in debt. Fitch gave Yuzhou a B+ credit rating last month (see Fitch’s report here).
Trading in Hong Kong, Yuzhou, the stock has lost 65% of its value in the past year and nearly half in the past six months, displacing Ram from the ranks of the world’s millionaires. It was worth $1.1 billion on the 2021 Forbes Millionaires List released in April.
Sheep founded Yuzhou in 1994, based in Xiamen. Prior to founding the company, he worked for the state-owned Xiamen Land Development. Lamb is a real-time billionaire at Forbes today and is worth $1.1 billion.
See related posts:
HNA’s Evergrande highlights how China’s business success paradigm is fading.
Chinese entrepreneur Fantasia credit rating downgraded to default