Home » News » Evergrande’s Financial Crisis and CEO’s Escape: Inside Look at China’s Real Estate Scandal

Evergrande’s Financial Crisis and CEO’s Escape: Inside Look at China’s Real Estate Scandal

Inner houses have been hit by thunder one after another, among which Evergrande (3333) suffered the most serious disaster, with debts of more than 2.4 trillion yuan, which is higher than the national debt of many countries in US dollars, which has caused a lot of shareholders and creditors to make a fuss.

Xia Haijun, former CEO of Evergrande.

Some fierce people in the business world broke the news that Evergrande’s failure has long been revealed. Among them, the top management is of course the most aware of the situation, including the former president Xia Haijun. On July 22, 2022, Evergrande issued an announcement on the Hong Kong Stock Exchange, announcing that Xia Haijun had resigned from the positions of executive director and chief executive officer, and Pan Darong had resigned from the positions of executive director and chief financial officer.

The fierce man said that Xia Haijun did not resign at that time, but fled. It is said that he came to Hong Kong for a meeting under the pretext, and then never returned. It is rumored that he has fled to the United States.

Xia Haijun’s escape has long been planned. In 2021, the year before his departure, he reduced his holdings of 10 million shares of Evergrande Property (6666) and 3 million shares of Evergrande Automobile (0708). From the end of July to mid-August 2021, he reduced his holdings of Evergrande bonds several times, cashing out a total of US$36.55 million (approximately HK$285 million). After news of financial difficulties came out in June, he sold Evergrande bonds, Evergrande properties and Evergrande Auto shares worth a total of 318 million yuan.

According to a Hong Kong Stock Exchange filing, Xia sold the notes at prices ranging from 36 cents to 52 cents in late July and early August last year and are now trading at about 10 cents, Bloomberg reported. In late June this year, it was reported that Xia Haijun was selling a duplex unit on the top floor of The Pavillion Hill in North Point. It is 56,000 yuan.

Xia Haijun has already become the working emperor of the mainland.

Xia Haijun has worked with Xu Jiayin, the founder of Evergrande, for many years, and his annual salary exceeds 100 million. He is known as the “Emperor of Migrant Workers”. Some mainland media counted for him, and his annual salary of 270 million yuan is more than the combined income of other insider bosses Mo Bin and Yu Liang who are in the same position as him.

Xia Haijun has become a shareholder of Evergrande since 2010, and has received a total of 51.1 billion yuan in dividends in 10 years. People wonder: Evergrande was already heavily in debt in 2011, why he was able to get more than one billion yuan in dividends ?

The timing of the group’s announcement of Xia Haijun’s resignation was also puzzling. At that time, the group had just revealed that 13.4 billion yuan in cash had been embezzled as a “third party” to provide pledges. At the worst moment of the crisis, Xia Haijun jumped ship.

It turned out that Xia Haijun had actually fled at that time, leaving the mainland and Hong Kong, leaving behind a mess, the group had to publicly announce his resignation. As for how much responsibility Xia Haijun was responsible for in the Evergrande explosion incident, it is now impossible to investigate.

There are various indications that Xia Haijun knew that something would happen to the company and planned to flee early on, but the big boss Xu Jiayin still stayed in the mainland. Poor minority shareholders and creditors are still on boats.

Ariel

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On August 8, the National Security Department of the Police Force went to the door and took away the parents of Guo Fengyi, a former student activist. The National Security Department attaches great importance to the case and is conducting an in-depth investigation.

The wanted Guo Fengyi.

Guo Fengyi is one of the eight most wanted criminals by the State Security Department, but her popularity is relatively low, and the outside world pays little attention to the crimes she is suspected of committing. However, Gao Ren pointed out that she has been lobbying the United States to sanction Hong Kong, including lobbying the United States not to allow Chief Executive Li Jiachao to attend the APEC meeting in the United States at the end of this year. The crime is fairly clear.

National Security Department’s 8 most wanted criminals.

According to police information, 26-year-old Guo Fengyi is suspected of committing the crime of “colluding with foreign countries or foreign forces to endanger national security” under the “Hong Kong National Security Law”. ) as the executive director, actively lobbying overseas, requesting foreign countries to impose “sanctions”, blockade or take other hostile actions against China and the Hong Kong Special Administrative Region.

Guo Fengyi who has fled abroad.

As early as June 2019, Guo Fengyi represented the “G20 Team” in the “Landeng” discussion area under the name of “Knorr Macaroni”, launched the first crowdfunding global newspaper campaign, and published advertisements in 16 newspapers in 13 countries , requiring countries to raise the issue of Hong Kong’s sovereignty and democracy to China during the “G20 Summit”. Her purpose is to open up an international propaganda front, “borrowing foreign countries to contain China” and asking foreign countries to interfere in Hong Kong’s internal affairs.

The “G20 Team” instigated by Guo Fengyi will be published in newspapers around the world in 2019.online pictures

In April 2022, Guo Fengyi issued a statement in the name of the “Hong Kong Democratic Committee”, criticizing the Hong Kong government for using the crime of “incitement” as a political weapon to suppress freedom, and urging the international community to condemn the actions of the Hong Kong government.

By May of this year, Guo Fengyi, as the executive director of the “Hong Kong Democratic Committee”, attended the hearing of the “U.S. Congressional and Executive Committee on China”, urging the U.S. to sanction the designated judges and related prosecutors of the “Hong Kong National Security Law”, and pushed the U.S. government to pass the “Hong Kong National Security Law”. Hong Kong Economic and Trade Office Accreditation Act to re-examine or even revoke the special status of Hong Kong’s Hong Kong Economic and Trade Office in the United States, and call on foreign institutions to sever cooperation with the “Economic and Trade Office”. Guo Fengyi also called on the US government to prohibit Chief Executive Lee Ka-chao from attending the APEC summit in the US in November this year.

The 26-year-old Guo Fengyi fled from Hong Kong as early as 2020 and is now in the United States. She has become an active critic of the Hong Kong government overseas and has applied for political asylum in the United States.

Guo Fengyi told the media that she entered the United States on a student visa that day, and that she would be arrested once she returned to Hong Kong. Although it has been more than a year since she filed for political asylum, there is still no follow-up. She admitted that she is still a little anxious, not knowing what the outcome will be, and there is a small chance that her application will be rejected.

Experts believe that Guo Fengyi is aggressively engaging in anti-China and anti-Hong Kong actions in the United States in order to increase her chances of obtaining political asylum in the United States.

In addition to Guo Fengyi, the rest of the wanted persons who fled overseas in violation of the national security law also include Ren Jianfeng, Yuan Gongyi, Guo Rongkeng, Xu Zhifeng, Meng Zhaoda, Liu Zudi, and Luo Guancong.

2023-08-12 01:21:40
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