Chinese media China Business News reported on the 28th that Xu Jiayin was awakened by a sudden noise at his residence and was then taken away to “assist in the investigation.” Although there were several guards and housekeepers at the residence, the process was calm and quick.
However, there were widespread rumors in the mainland community that Xu Jiayin and his bodyguards once fiercely resisted.
China Business News also quoted people familiar with the matter as saying that the core members of Evergrande who were taken away recently include Xu Jiayin’s second son, Xu Tenghe.
Xu Tenghe is known as Peter within Evergrande and rarely appears in public information. The last time he attracted attention was in December 2021. Foreign media reported that he sold a building on Sunset Boulevard in Los Angeles, USA, at a discount of US$12.5 million. mansion.
Xu Tenghe presided over the business of the Pearl River Delta branch of Evergrande, and was later transferred to the general manager of Evergrande Wealth, responsible for specific business. Du Liang (Du Liang), who had previously been notified by the Shenzhen Public Security Bureau that criminal coercive measures had been taken, was his subordinate.
According to Tencent News, Xu Jiayin’s “ex-wife” Ding Yumei immediately bought a plane ticket and left Hong Kong after learning that a Chinese entrepreneur was subject to border control because of Xu Jiayin. Before that, she had been assisting relevant institutions in Hong Kong to restructure the debt of Evergrande Group. It is not known where she is now.
A month ago, Evergrande’s announcement no longer listed Ding Yumei as Xu Jiayin’s spouse, but instead called her a third party independent of the company and its related parties. This triggered speculation about Xu Jiayin’s divorce.
The 21st Century Business Herald quoted an analysis as saying that of the more than 90 billion in Evergrande Group’s cumulative dividends, offshore companies in the British Virgin Islands and Cayman Islands, 100% controlled by Xu Jiayin and Ding Yumei respectively, received it through China Evergrande. Most of the dividends were transferred overseas before and after the accident, that is, through the operation of “technical divorce”, they eventually fell into the pocket of “overseas ex-wife” Ding Yumei.
The WeChat public account “Juhuo PLUS” also published an article on the 27th, saying that Evergrande’s money had long been moved overseas by Xu Jiayin or his relatives, leaving a lot of chicken feathers in the country. When Xu Jiayin filed for bankruptcy protection in the United States, the authorities Realizing that something was wrong, he took action to contain the situation.
Xie Jinhe, chairman of Caixin Media, posted on Facebook, “How much assets can the imprisoned Xu Jiayin spit out? I’m afraid it’s not that optimistic.”
Zhang Tianliang, a historian and professor at Feitian University in the United States, pointed out in his video program that although Xu Jiayin has grabbed a lot of wealth, he is actually the white glove of the powerful CCP officials. The princelings behind him must have earned more than Xu Jiayin.
So far, the core members of Evergrande reported to have been taken away include former CEO Xia Haijun, former chief financial officer Pan Darong, former chairman of Evergrande Real Estate Group and Evergrande Property Group Zeng Litao, former chairman of Evergrande Real Estate Group Ke Peng, Du Liang, the legal representative and executive director of Evergrande Wealth, and Zhu Jialin, the former chairman of Evergrande Life Insurance, and others.
The 21st Century Business Herald quoted criminal law experts as saying that the issues involved in Xu Jiayin are likely to be related to multiple crimes, are very complicated, and may take a long time to be clarified.
Wen Zhao, a scholar in Canada and a well-known self-media person, said in his program, “The most indispensable thing in China is crimes. Huang Guangyu (founder of Gome Electric Appliances) was charged with illegal business, bribery and insider trading. The number of crimes that can be punished against Xu Jiayin is definitely more than ten times that of Huang Guangyu.”
Wen Zhao pointed out, “The formal arrest of Xu Jiayin means that the government has taken over the final risk of the Evergrande explosion. At that time, all responsibilities will be placed on Xu Jiayin. Although Xu Jiayin also deserves his punishment, in the process, supervision will be The department’s responsibility has been cleared. When the final step comes, it will be the moment when Evergrande’s owners, creditors, and investors suffer the final losses.”
“Beijing Spring” editor-in-chief Hu Ping told VOA: “Over the years, the real estate industry itself has had such a big problem, and now this problem has exploded, causing such serious consequences to China’s entire economy and the lives of ordinary people. The authorities need to find a scapegoat.”
The authorities are guiding public opinion, trying to convince the public that China’s real estate crisis and the resulting economic crisis are caused by these unscrupulous and unscrupulous businessmen who once made a lot of money and became billionaires.
Hu Ping said that when using various means to direct people’s anger towards businessmen, the authorities did not mention that China’s real estate developers, large and small, without exception, all developed with the strong support of the CCP government, and the CCP The government made much more money by selling land at no cost and profit than developers; when the economic crisis occurred, on the one hand, the CCP government held businessmen accountable, but on the other hand, it did not review its own responsibilities, and had no intention of giving back the money it made from selling land. of money measured in trillions.
Zhang Tianliang also said that the Chinese Communist Party government has single-handedly inflated China’s housing prices in order to increase the price of land sales, and those middle class people who buy houses have become “leeks”.
French “Le Monde” commented: “Xu Jiayin was arrested and became one of the long list of Chinese bosses who disappeared due to police investigations. In China, the disappearance of public figures is commonplace. Due to the opacity of the system, they have been detained for a long time. He was imprisoned but could not get any information.”
Hu Ping said: “Xu Jiayin was once the richest man in China and a benchmark figure in the Chinese business community. He has lost his personal freedom and is likely to be sentenced to prison. The impact on the Chinese business community is conceivable. He will make many businessmen, especially Those big businessmen and wealthy businessmen feel a general fear. On the one hand, it is the sorrow of the rabbit and the fox; on the other hand, it will cause a so-called chilling effect. In other words, many businessmen will feel that as China’s economic situation worsens, it is very likely that Use them to sacrifice the flag.”
Hu Ping pointed out that since Xi Jinping came to power, cracking down on famous businessmen has become a consistent practice of the CCP. Under this consistent approach, the targets and reasons for the attacks are different; for example, the attack on the e-commerce Alibaba CEO Jack Ma was because Jack Ma had the gall to criticize the CCP for not understanding economics and finance, and actually established his own so-called Whampoa Military Academy. Develop your own political power.
Farmer entrepreneur Sun Dawu was hit because Sun not only succeeded in running businesses, he also ran schools, hospitals and charities. Hu Ping said that in the view of the Xi Jinping government, Sun Dawu is competing with the party and the government for the hearts and minds of the people, which is absolutely intolerable.
Magnus, a researcher at the China Center at the University of Cambridge, told VOA that Xu Jiayin was not unlucky by chance, but was doomed. He said, “Xu Jiayin’s fall from grace undoubtedly fits a pattern of behavior in which businessmen, party members, even ministers and others are stigmatized for things that Xi Jinping and the leadership disapprove of. (His loss of freedom) is definitely not a random event, and it is definitely not the last punishment.”
Xie Jinhe, chairman of Caixin Media, posted on Facebook: This building collapse also represents the end of the era when China relied on real estate to create high GDP growth.
This time Xu Jiayin’s domino fell, and more dominoes will fall next, such as Country Garden, Sunac, Shimao Group, Kaisa, Sino-Ocean Group, Agile, Aoyuan…
Next, how many bad debts have been swallowed up by financial institutions? If house prices fall, how many people will fall into negative equity? Then there is deleveraging, local government debt crisis, pension crisis… The whole of China will have to face the adjustment of the real estate bubble, which may take ten, twenty years, or even longer!
2023-09-29 11:22:11
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