It is said that since July 1 this year, Hui has raised more than 7 billion yuan ($1.1 billion) in cash through selling off his personal assets and equities.

Chinese gross domestic product grew 4.9% in the third quarter.

The news came shortly after the distress of Evegrade, another Chinese real estate company.

The company is warned of default risks amid plunging property sales, sending its stock and bond prices sharply lower.

Market analysts and other participants are now facing a high risk of a domino effect in case the real estate group collapses.

China became the European Union's main trading partner for the first time in 2020, surpassing the US, thanks to its rapid economic recovery, which was less affected by the Covid-19 pandemic than its Western counterparts.