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Evergrande Is Face Of Zombies Stalking China’s Economy

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Hui Ka Yan attends a news conference in Hong Kong.

Justin Chin/Bloomberg

It’s never a good thing when a business story pivots to yachts worthy of a James Bond villain. From the insider traders of the 1980s to Russian oligarchs of the 1990s to Malaysian fugitive Jho Low, these seafaring metaphors of ostentatious excess make for uncomfortable headlines when the music stops.

Welcome to Hui Ka Yan’s 2021 as Chinese regulators and investors alike circle his 60-foot superyacht at a moment when his China Evergrande Group is struggling to avoid the rocks.

It’s the centerpiece of roughly $485 million of luxury assets bondholders argue Hui could sell to cover Evergrande’s debt payments. Instead, Hui has opted to delay some recent bond-coupon payments, causing some, well, choppy seas for world markets.

Hui’s yacht is named, wait for it, “Event.” What an event it’s been indeed to have…

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