Xu Jiayin made his fortune in the style of gambling, business career suffered a major crisis also rely on gambling and luck to pass, but now the situation and with the environment is different, this hand Xu Jiayin is likely to lose all. (Photo / Reuters)
After struggling for several months, Evergrande finally announced that it was in default due to its inability to repay its debts and interest, in exchange for the Guangdong government sending a working group in. Beijing’s attitude was clear: sell company and personal assets and pay off debts. But Xu Jiayin made some gestures to repay the debt earlier, and now he starts to play the game again. It seems that he has to gamble again and throw the mess to the government, or else it is to lend him money to spend the crisis. Xu Jiayin made his fortune in the style of gambling, business career suffered several major crises also rely on gambling and luck to get through, but now the situation and with the environment, this one Xu Jiayin is likely to lose all.
Xu Jiayin was once the richest man in mainland China, but as a child was very poor, the story of starting from nothing is very inspirational to many young people on the mainland. He was born in 1958 in a poor rural village in Henan province. In 1978, after the end of the Cultural Revolution, he enrolled in Wuhan Iron and Steel Institute and finished college with a meager government grant. After graduation, he was assigned to work in Henan’s Maoyang Iron and Steel Plant. Deng Xiaoping went south to Shenzhen in 1992 to blow the trumpet of reform and opening up, and at the age of 34, he decided to give up his iron rice bowl in state-run enterprises and venture into Shenzhen with a resume of more than 30 pages, entering a trading company to work, and his boss asked him to take 400,000 yuan (RMB, the same below) and a colleague to Guangzhou to engage in real estate, and he quickly caught a state-owned enterprise in financial difficulties to sell land at a low price, and Xu Jiayin quickly completed the boss Xu quickly completed the task of land purchase given by his boss, and then took the land to the bank for a loan for development, and launched his first real estate case, Pearl Island Garden, in 1995.
At that time, Guangzhou real estate just started, with the drawings before the construction can begin to sell houses, the original know nothing about real estate Xu Jiayin’s original idea, first to spend the funds for the entire land around the landscape, to create pavilions and gardens, small bridges and flowing water, coupled with spacious roads, so that buyers eyes bright, the house before the construction began to line up to book. He then took the deposit to buy land, take out a loan and sell the property, and quickly rolled out several development cases. Due to the amazing profit, Hui decided to break away from his original boss and set up Guangzhou Evergrande Real Estate in 1997 with his company’s original staff.
Xu Jiayin made some gestures to repay his debts earlier, and now he started to play the game again, as if he had to gamble again and throw the mess to the government, or else he would be lending money to him to get through the crisis. But most people think this hand Xu can not win. (Photo / Reuters)
After months of wriggling to sell assets to pay off debts, Hui is now playing the “lie flat” trick with both hands, dragging more than 1,000 development cases and a large number of home buyers and participating banks to see if the Chinese government wants to bail Evergrande out. (Photo / Reuters)
In 1998, the mainland ended the half-century welfare housing system and launched the commercial housing policy, Evergrande took advantage of the situation and made great achievements within 8 years, forming a real estate and upstream and downstream industrial Within 8 years, Evergrande formed a real estate and upstream and downstream industries group with an annual output value of 23 billion yuan. At that time, he was one of the representative figures of the first batch of rich people who started from scratch after the reform and opening up, and was elected as a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), and became a star figure of finance and economics pursued by the body during the “two sessions” in Beijing. Xu Jiayin’s most famous image is the photo of him dancing around in Beijing’s Tiananmen Square with his Hermes belt buckle engraved with the letter “H”, and was therefore given the nickname “Belt Brother”.
After Xu Jiayin became the richest man, he was often the subject of media interviews. His most famous photo is this one taken in Tiananmen Square when he attended the “two sessions” in Beijing, thus earning him the nickname “Belt Brother. (Photo: Internet)
At that time, Xu Jiayin’s business practices were evaluated by the financial sector as bold, with emphasis on product packaging and marketing, and high operational efficiency. But within a few years, Hui met his first major crisis after starting his own business, because the speed of land acquisition and expansion was too fast, and in 2008, when the global financial crisis, Hui was forced to suspend his listing plan, and his operations were in a dilemma of insufficient liquidity, and the company was in danger. For this reason, Hui went to Hong Kong to get to know Hong Kong real estate developer Albert Yeung, Lucy Lau and Cheng Yu-tung through the referral of celebrities, and also accompanied Cheng Yu-tung to play mahjong for a few months, and finally, with the assistance of Lau and Cheng, he was able to get foreign banks to invest in Evergrande, which enabled him to overcome the crisis.
Evergrande finally announced its default due to its inability to repay debts and interest, in exchange for the Guangdong Provincial Government sending a working group in. At present, Evergrande has more than 1,000 development cases still in progress. (Photo / Reuters)
After the financial crisis, Evergrande Real Estate was finally listed in Hong Kong in 2009, and Hui Ka Yan became the richest man in mainland China with a value of 42.2 billion yuan. After becoming the richest man, Xu Jiayin began to cross into other industries, including: setting up Evergrande Culture Group in 2010, imitating Wanda Enterprises to join the business of operating cinemas, but losing money one after another until this year; in the same year, he also took ownership of Guangzhou Football Club in the Chinese Super League, and invested 12 billion yuan in 2018 to build a large soccer stadium with a capacity of 100,000 people, but the stadium has now stopped construction; in 2013, Evergrande launched Ice Spring packaged water, with a 3 In 2013, Evergrande launched Ice Spring packaged water, with a loss of 4 billion yuan in 3 years; in 2015, Evergrande and Tencent combined to form Hengteng Network, which operates home and community finance, with the same loss in successive years.
In 2010, Evergrande entered the Chinese Super League Guangzhou Football Club and invested 12 billion yuan to build a large soccer stadium with a capacity of 100,000 people in 2018, but the stadium has stopped construction. (Photo / Reuters)
In 2016, the mainland State Council officially issued a policy to crack down on property speculation. Xu Jiayin still continues to expand in the real estate industry, but also in 2019 to catch up with the popular entry into the automotive industry, and shell listed in Hong Kong, so far invested 50 billion yuan, several times the release will only take out the car model, become the laughing stock of the industry.
In 2019 Xu Jiayin also catching up with the popular entry into the automobile industry and listed in Hong Kong on the shell, invested 50 billion yuan so far, and several publication meetings only took out car models, which became the laughing stock of the industry. (Photo / Hengchi car)
Many people think that Evergrande has long been emptied of Xu Jiayin, and now it is not like the time when he went to Hong Kong to ask for help to find a gold master to save him, the current scale of Evergrande’s liabilities of 1.97 trillion yuan on the table is not a bank or a gold master to save, not to mention the rumors that Evergrande has deep off-balance sheet liabilities. In July this year, Guangfa Bank froze Evergrande’s bank deposits, and in August, Xu Jiayin gave up the chairman and general manager of Evergrande Real Estate to the unknown Zhao Changlong, so the discerning people will know that Xu Jiayin is unable to return to heaven and intends to run away. Save can’t live”.
After months of twisting and turning to sell assets to repay debts, now it is playing the “lie flat” trick with both hands, dragging more than 1,000 development cases and a large number of home buyers and banks participating in financing to see if the Chinese Communist government wants to save Evergrande. However, the Chinese Communist Party has repeatedly stated that it will not save him. The current international political and economic situation is unfavorable, and if coupled with the continuous explosion of the real estate market, it will be a major concern for social stability. Most people are not optimistic about this big gamble of Xu Jiayin, and now even the U.S. Secretary of State Blinken is staring at it with eyes wide open.