Eleven Golden Week, the largest talk in the real estate circle in China is not the "gold nine silver ten" of the property market, but the "Mid -Autumn Festival" of the real estate tycoon Xu Jiayin.
Shortly after the news that Xu Jiayin was taken away by the police was reported, China Evergrande issued an announcement on September 28th on the eve of the Mid -Autumn Festival that the chairman of the board of directors Xu Jiayin had been taken for mandatory measures for suspected illegal crimes.
Evergrande and Chinese officials did not disclose the reasons for Xu Jiayin's case.The Wall Street Journal Sunday (October 1) quoted people familiar with the matter and said that the official is investigating whether Xu Jiayin tried to transfer assets overseas when Evergrande's financial dilemma.
The 63 -year -old Xu Jiayin founded Evergrande Real Estate in 1996, leading this private enterprise to develop rapidly, and the business territory has also expanded to property, insurance, health, finance, cultural tourism, and automobiles.In the more than 20 years of the outbreak of China's property market, Evergrande has grown into a real estate industry giant.However, with the official tightening of the credit policy of the real estate industry after 2020, some housing companies with long -term high -leverage operations have fallen into a liquidity crisis, and Evergrande has become the highest debt real estate enterprise.
The official investigation of the Evergrande department has the meaning of "one pot".It is reported that Evergrande's other core seniors, including Xu Jiayin's second son of the Evergrande wealth business Xu Tenghe, former chief financial officer of Evergrande Pan Darong, and former chairman of Evergrande Property, Ji Litao, etc., all were involved in the case.check.On September 16, Du Liang, the legal representative, executive director and general manager of Evergrande's wealth, was also adopted by the Shenzhen police to take criminal compulsory measures.
Evergrande's non -debt debts were fermented once more than two years ago. The fuse was a crowded storm under Evergrande's wealth management company.In September 2021, an angry investor surrounded the Evergrande headquarters building and asked Evergrande to repay the money. The protesters include Evergrande Wealth employees.
Some media quoted sources at that time that the Guangdong Provincial Government, responsible for coordinating Evergrande and its creditors, assigned a team of law firm to enter Evergrande in August 2021, and selected accounting firms and financial consultants to join the joint working group.It seems to be prepared in Evergrande.
However, Evergrande rejected that the remarks on the Internet about Evergrande's bankruptcy reorganization were completely incorrect, and said that the company did encounter unprecedented difficulties, but they were trying to do everything to restore normal operations.Evergrande, which was windy and rainy, also established a special working group of "Insurance Transfer Building". After Xu Jiayin, he frequently appeared publicly and set up a military order for "insurance to pay the building."
After more than two years, the scene of the Chinese real estate market continued to deteriorate, and Evergrande still struggled in debt quagmires.As of June 30 this year, Evergrande's liabilities reached 2388.2 billion yuan (RMB, S $ 456 billion).A few days ago that Xu Jiayin was controlled by the police, Evergrande's overseas debt reorganization was frustrated and canceled a debt restructuring plan.
Public opinion questioned that the official handled the Evergrande Explosive Storm in two years ago, and gave Xu Jiayin the time to resolve debts and risks, but in the past two years, Xu Jiayin was "saving yourself".
From the "richest man" to "first negative", he seemed to have a plan.The real estate tycoon, who has repeatedly publicized "show affection", was exposed to "technical divorce" with his wife Ding Yumei last year to avoid debt with curves; the market also rumored that Xu Jiayin set up a trust fund overseas to do a good "rich second generation of rich second generationsProtect".There are public opinion irony. When Evergrande's wealth extruded storm, Xu Jiayin's phrase "I can have nothing, but Evergrande wealth investors cannot have nothing."earn.
Evergrande is a typical model of the development model of "high leverage, high debt, and high turnover" development model in the Chinese real estate industry, and now it has also become a typical example of "privatization, cost socialization, and nationalization of risks" in the real estate industry.
According to Caixin reports, the scale of Evergrande's non -debt is as high as 664.2 billion yuan. This astronomical number allows banks with transactions with Evergrande to face huge risks.Various funds owed by Evergrande also means that large and small suppliers and contractors related to Evergrande are likely to face building materials and labor services.The bigger problem is that the real estate industry involves the vital interests of buyers. How can Evergrande, who is not headed by the dragons today, will cause thousands of home buyers to turn the money and sweat.nightmare?
China is trying to transform the real estate industry and release the risks accumulated in these years, but this process is not easy.In addition to Evergrande, Country Garden and other housing companies also wander on the edge of the cliff of breach of contract.If the risk of the real estate industry is fermented and passed on to ordinary home buyers, it will not only affect the financial system, but also shake the stability of society.
The official crisis may be involved sooner or later. In the past, the heads of large -scale enterprises such as HNA and Anbang were filed for investigation.But in the face of the huge real estate market, how much the government has the ability and resources to save every real estate company that owes huge debt; if well -known real estate companies have been waiting for the government to help them after they have achieved the rich.How much is the price?
Evergrande's crisis has become a hot potato, and it is left to the official Xu Jiayin to create this hot potato. This "Mid -Autumn Festival" is expected to be difficult to cross.
