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Hong Kong’s Richest Lady Now Taking On Massive Losses Due to Evergrande’s Solvency Issues Emanating from the China Real Estate Crisis

It seems that the dominos are beginning to fall.  Evergrande was first, now those connected to Evergrands solvency issues include multiple companies and Hong Kong’s richest woman.

A few weeks back, we reported about Evergrande.  Due to its portfolio of Chinese realty, the Hong Kong giant with the highest debt ratio of all corporations in the world was now facingsolvency issues.

BREAKING: Hong Kong’s Evergrande, With Its Huge China Real Estate Portfolio, Has Trading Halted As Its Debt Crisis Escalates

And then, additional companies were found.

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Three More Companies Join Evergrande – Unable to Meet Debt Obligations – Total Debt of Nearly Half a Trillion USD Facing Solvency Issues in China

Today another company is involved in the Evergrande crisis is identified and it’s owned by Hong Kong’s richest woman.  Evergrande was linked to Chinese Estates Holdings.

Chinese Estates Holdings, controlled by Hong Kong billionaire Joseph Lau and his wife Chan Hoi-wan, has been a long-time ally of Evergrande. Evergrande’s Hong Kong listing in 2009 saw Evergrande list on Hong Kong. Since then, the Chinese developer has received financial support from it by subscribing many of its stock and bond sales. It also collaborated with Evergrande in property development projects on mainland China.

Because of her Chinese Estates Holdings holdings, Chan Hoi-wan was the most wealthy woman in Hong Kong in 2017.

Chan Hoi Wan is a veteran entertainment journalist who has made great strides. She is not only a well-known celebrity, but also the wealthiest woman in Hong Kong with HK$50 Billion (S$9 Billion).

After Joseph Lau, a property tycoon, passed to her HK$11.3 trillion worth of shares in Chinese Estates, she claimed the title. He was ill at the time.

Chinese Estates is now owned by Ms Chan (37), which gives her a 50% stake. She also serves as an executive director.

Forbes said this in the early morning

Joseph Lau and his wife Chan Hoi Wan have proposed to take Chinese Estates Holdings private for HK$1.91 billion ($245 million) after incurring steep losses on its investment in cash-strapped China Evergrande Group.

Chinese Estates said in a filing to the Hong Kong exchange that it’s offering HK$4 apiece to acquire the 25% of the company’s shares that are held by outside investors. It stated that the offering represents a premium approximately 83.5% above its closing price, HK$2.18 on September 28th. That was the day the shares were suspended.

Chinese Estates’ shares rose 31.7% after the resumption of trading. This surge drove the premium to 4.7%, compared with its closing price at HK$3.82. Lau and Chan control nearly 78.6% of Chinese Estates’ outstanding shares.

The Evergrande disaster caused by China’s real estate collapse looks to be growing.