Evergrande-China's largest property group by sales Photograph:( Reuters )
The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible
Evergrande, the biggest real estate developer in China, which is staring at bankruptcy, hit the world’s biggest fortunes, with the richest people losing billions of dollars.
The world’s top 10 richest people, such as Elon Musk, Jeff Bezos, Bill Gates, Mark Zuckerberg, Warren Buffett, and others lost over $26 billion.
China's Evergrande Group is the country's second-biggest property developer. It is battling a liquidity crisis as it looks for funds.
There have been growing fears that it is set for a meltdown. However, the cash-strapped developer had told authorities earlier that it had begun repaying investors.
The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible.
Musk saw his net worth falling by $7.2 billion to $198 billion, according to the Bloomberg Billionaires Index.
Amazon.com Inc. founder Jeff Bezos lost $5.6 billion, with a net worth of $194 billion.
In comparison, the S&P 500 index tanked 1.7 per cent to $4,357.73, posting its worst daily performance since May this year.
Monday’s sell-off dragged the S&P 500 index 4.3 per cent down from its 52-week high of $4,545.85.
Meanwhile, stocks in Asia opened amid the turmoil caused by Evergrande. Hong Kong's Hang Seng Index saw a marginal gain of 0.2 per cent after it had plunged three per cent on Monday.
The stock market in Tokyo lost two per cent in early trade as markets in the Philippines and Indonesia also fell on Tuesday morning.