Evergrande sent a letter to the provincial government of Guangdong in August, warning officials that the payments could cause a liquidity crisis and potentially lead to cross defaults in the broader financial sector. News of the plea for help emerged on Sept 24, sending Evergrande's stock and bonds tumbling even as the company dismissed the concerns as based on rumours and"fabricated" documents.
Yet like many of these investors, Suning is an Evergrande supplier, so a collapse could have ripple effects on their business as well. Another backer, Guangtian Holdings, counts on Evergrande for 47 per cent of revenue at its main unit, while an arm of the interior design firm even invests in Mr Hui's soccer club in Guangzhou.
As Evergrande's assets swooned last month, Mr Hui also got some help from his longtime backers. Among them was an investment company part owned by Cheung Chung Kiu, a real estate tycoon known for being one of Mr Hui's poker buddies. Lombard Odier, which has invested in Evergrande's offshore debt since 2017, and two Hong Kong property developers - Asia Standard International Group and Asia Standard Hotel Group - also added to their holdings.
From tapping the infrastructure and housing booms that have come to define China, to venturing into soccer - a passion of President Xi Jinping - or jumping on the electric-car bandwagon, Mr Hui has leveraged China's shifting needs, latching onto the hottest sectors that enjoy government support. "About poverty, I know it very well," Mr Hui said in a rare 2018 speech after receiving a philanthropic award."In school, all I ate was sweet potato and steamed bread. I really hoped I could leave the village and eat better."Encouraged by the prospect of Deng Xiaoping's economic reforms plan, Mr Hui quit his job at a steel firm in 1992 and headed to Shenzhen. He later began developing property in Guangzhou, the capital of Guangdong.
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