Xu Jiayin "Final Chapter"! The ex-wife who left and was divided more than 90 billion

Xu Jiayin's story has reached its final chapter.

Not unexpected, but suddenly.

On September 28, China Evergrande issued an announcement saying, "The company has received notice from the relevant departments that Xu Jiayin, executive director and chairman of the board of directors of the company, has been taken compulsory measures in accordance with the law due to suspected violations and crimes." Trading in the Company's shares will cease on the SEHK with effect from 9am on 28 September 2023 and will continue to cease trading until further notice. ”

This means that Xu Jiayin's era is over, and his boots are on the ground.

In fact, Xu Jiayin's current situation has long been signed.

On August 21, China Evergrande announced that its subsidiaries launched a number of fixed financing product issuance plans through Evergrande Wealth in response to their capital needs. In August 2021, due to the difficulty of payment, the external sales of fixed financing products have been completely stopped.

According to China Evergrande statistics, from the inception of Evergrande Wealth to the suspension of sale, a total of about 92.1 billion yuan was involved.

As of December 31, 2022, the outstanding principal and interest were RMB41 billion and RMB34 billion, respectively.

At the time, some industry insiders said that this was not a good omen, which may mean that Evergrande wealth could not be paid in the future.

On the evening of September 16, the Nanshan Branch of the Shenzhen Municipal Public Security Bureau issued a case report. According to the circular, recently, the public security organs have taken criminal compulsory measures against Evergrande Fortune Du and other suspected criminals in accordance with the law.

On September 18, China Evergrande issued an announcement that Evergrande Wealth is an indirect wholly-owned subsidiary of the company, and the relevant personnel of Evergrande Wealth have been taken criminal compulsory measures in accordance with the law, which will not affect the company's operation and operation.

At that time, some media speculated that Xu Jiayin might have been difficult to stand alone, but he did not expect that the story would end so quickly.

On September 27, Bloomberg reported that Xu Jiayin had been taken away by Chinese police earlier this month and was under residential surveillance at a designated location.

However, the news was confirmed a day later.

Kanjian Finance believes that for Evergrande, Xu Jiayin may no longer have anything to do with the overall situation, and the subsequent guarantee of the handover building will still proceed smoothly, and his personal outcome is already doomed.

Xu Jiayin may have already begun asset "isolation"

Xu Jiayin once said, "I can have nothing, but the investors of Evergrande Wealth cannot have nothing." ”

At the "Evergrande Wealth Symposium" in September 2021, Xu Jiayin made it clear that it is necessary to ensure that all mature wealth products are paid in full as soon as possible, and not a penny can be less. He also declared at the meeting that in the process of payment, it must be fair and just, no one will be allowed to engage in specialization, it has not happened before, and it will never happen in the future, and that every effort should be made to make payment earlier than planned according to the established payment plan.

In fact, from now on, this is just Xu Jiayin's rhetoric, in fact, he has already begun to do debt isolation.

On August 16, some media said that Xu Jiayin had divorced.

For the rumors of Xu Jiayin's divorce, Evergrande's reply at that time was that it was not clear and there was no news.

However, some media found that the 2021 and 2022 financial reports supplemented by China Evergrande on August 16, neither of which mentioned Ding Yumei's identity, but only referred to "Ms. Ding Yumei" or "Ding Yumei".

Looking through China Evergrande's previous financial reports, Ding Yumei was clearly mentioned as "Professor Xu Jiayin's spouse", and the term "Mrs. Xu" was used in the financial report.

Some media pointed out that there are strict requirements for the symmetry of Hong Kong listed companies, and the change of Ding Yumei's title means that the two have divorced.

So, the media had this speculation at the time.

According to Tencent News, Ding Yumei immediately bought a plane ticket to leave Hong Kong after learning that a mainland entrepreneur was being charged by Xu Jiayin. Prior to that, she had been assisting relevant institutions in the debt restructuring of Evergrande Group in Hong Kong.

It can be seen that the news is true.

However, for Xu Jiayin's "technical" divorce, some insiders said that if it is a technical divorce, it is obviously too late, because even if it is divorced now, the joint debts generated within the marriage still need to be repaid by both parties, so the divorce cannot achieve the purpose of debt isolation.

Kanmi Finance believes that this may not be the case.

According to the 21st Century Business Herald, Evergrande Group had previously distributed more than 90 billion yuan in cumulative dividends, and this part of the dividends was 100% controlled by Xu Jiayin and Ding Yumei respectively by the offshore companies of the British Virgin Islands and the Cayman Islands, which received most of the dividends through China Evergrande, and transferred them abroad before and after the accident, and finally fell into Ding Yumei's pocket through the operation of "technical divorce". ”

This means that perhaps Xu Jiayin's asset "isolation" has been successful, and his "ex-wife" Ding Yumei has also successfully retreated.

More than 90 billion were divided

The problem of Evergrande's department, Xu Jiayin may have been clear for a long time.

Therefore, since 2020, Xu Jiayin has begun to layout. It's just that Xu Jiayin has not stopped investing abroad. By 2021, Evergrande's problems were already very prominent.

Xu Jiayin prescribed a "medicine" to Evergrande at that time, and in principle, he would not buy land or sell land at a discount for ten years. In addition, Evergrande will fully realize the sale of existing buildings in the next ten years, and the scale of real estate will also drop from more than 700 billion yuan last year to about 200 billion in ten years, and Evergrande will shift from real estate to new energy vehicles within ten years.

Its delusional attempt to use new energy to save Evergrande now seems to be nothing more than a "smoke bomb".

At the beginning of 2022, Xu Jiayin said at the 2022 Baojiao Building New Year Kick-off Mobilization Conference that the company's assets should not be sold at a discount at any time, and attention should be paid to preventing loopholes in the process of asset disposal, and you cannot rely on selling assets at a discount to pay off debts, otherwise it will be difficult to pay off debts when assets are sold.

Of course, Xu Jiayin knows that he cannot sell assets at a low price. Because Evergrande may have been insolvent at that time, if a run had been caused at that time, the problems of Evergrande might have been more thoroughly exposed.

Therefore, for Xu Jiayin at that time, this was not allowed, because many of the "layouts" had not yet been completed. And China Evergrande suspended trading because of financial reporting problems, which may also give Xu Jiayin a little "respite".

In July 2023, China Evergrande finally released its financial report, which was belated, revealing many mysteries and completely exposing Evergrande's liabilities to the public.

For Evergrande's debt, it is too large to deal with, and the complex debt structure makes the market stunned. Among them, due to its own "accounting treatment change", the previous year's revenue was reduced by as much as 664.3 billion yuan, which shocked the market to "numb".

According to the 21st Century Business Herald, the issues involved in Xu Jiayin are likely to be related to multiple crimes, which are very complex and may take a considerable amount of time to clarify.

Red Star News also said that Xu Jiayin's compulsory measures were not unrelated to the 664.3 billion yuan that "disappeared" in Evergrande's financial report.

Of course, for Xu Jiayin himself, the current end is already doomed.

The more than 90 billion yuan that has been divided over the years may have also landed "safely", and Ding Yumei may have withdrawn from it, but it has suffered from Evergrande's investors and continues to collect debts.