Xu Jiayin is a well-known entrepreneur in China, and the founder and major shareholder of Evergrande Group. Recently, the news about Xu Jiayin** has attracted widespread attention and speculation. One of the points of view is that Xu Jiayin transferred tens of billions of funds overseas, and his ** has something to do with it. However, this is not the case. In fact, Xu Jiayin began to transfer tens of billions of assets overseas many years before the Evergrande crisis. Moreover, it is almost impossible for this money to flow back. So, why is Evergrande registered in the Cayman Islands and then listed in Hong Kong?This is because the Cayman Islands is considered a tax haven, while Hong Kong is Evergrande's sales market. In addition, Evergrande's parent company has no actual business, similar to an investment platform, and it is its domestic subsidiaries that really make money. These subsidiaries make money from real estate projects and then aggregate the funds to the listed parent company. It is worth noting that the majority shareholder of Evergrande's parent company is a company called Jinxin, which is owned and controlled by Xu Jiayin. Jinxin is located in the Virgin Islands and earns profits through the pooling of funds. In this way, through this series of operations, Xu Jiayin not only transferred funds overseas, but also successfully avoided supervision. However, the reason why Xu Jiayin has nothing to do with Jin Xin's capital transfer, but because Evergrande's debt is as high as 24 trillion, under great pressure. This post will ** these points in detail and analyze the reasons behind them.
As the founder and major shareholder of Evergrande Group, Xu Jiayin has transferred tens of billions of funds overseas through various ways over the years. This is not an accident, but a carefully planned and executed act. Domestically, Evergrande's parent company is registered in the Cayman Islands, which is widely regarded as a tax haven. Evergrande has also chosen to list in Hong Kong, which is an open financial center that is conducive to attracting capital and expanding corporate influence. The Cayman Islands incorporation allows Evergrande to take full advantage of its tax avoidance and tax incentives, while the Hong Kong listing offers many financing and investment opportunities. This dual structure laid the foundation for Xu Jiayin's transfer of funds.
It is worth mentioning that Evergrande's parent company does not actually have an actual business, but is only an investment platform. The real money is made by Evergrande's subsidiaries in China, which make profits through real estate projects. The money earned is then aggregated to the listed parent company for capital pooling. The major shareholder controlling Evergrande's parent company is Jinxin Company, which is owned and controlled by Xu Jiayin. Jinxin is registered in the Virgin Islands, and it is a company that specializes in receiving dividends from Evergrande's parent company. Through this series of operations, Xu Jiayin successfully transferred funds overseas, avoiding domestic supervision.
So, why did Xu Jiayin transfer his funds overseas?First of all, overseas supervision is relatively relaxed, allowing for more freedom in the use of funds for investment and operation. Second, the transfer of funds overseas can better diversify risks and avoid the adverse impact of fluctuations in the domestic financial market and policy changes on enterprises. Most importantly, the transfer of funds also provided Xu Jiayin with more opportunities to invest and expand his personal wealth.
The reason why Xu Jiayin was able to transfer funds overseas and use them freely was because Evergrande was a foreign-funded enterprise. Evergrande's Cayman Islands-registered parent company and Jinxin are both overseas companies, which makes the flow of funds more flexible and there are few regulatory restrictions. Compared with domestic enterprises, foreign-owned enterprises can operate and make decisions more freely. It also means that Xu Jiayin can run the business and manage his personal wealth more autonomously.
However, the operation and regulation of foreign-owned enterprises also brings a series of problems and challenges. On the one hand, the state has gradually strengthened its supervision and scrutiny of foreign-funded enterprises to prevent capital outflows and improper investment. This has brought certain risks and challenges to Xu Jiayin. On the other hand, Xu Jiayin may encounter more restrictions and constraints under domestic laws and regulations than domestic enterprises, which limit his freedom of action and decision-making. This shows that Xu Jiayin, as a Chinese, has advantages in operating enterprises and funds overseas, but also faces some restrictions.
Recently, Evergrande Group has faced a serious debt problem, and it is reported that Evergrande's debt is as high as 24 trillion, which brings huge pressure and risk to enterprises. It was revealed that Evergrande is facing serious cash flow problems and is unable to repay its debts on time, resulting in damage to its reputation and loss of investor confidence. In this case, the investigation and blockade of Xu Jiayin and his senior management team has gradually surfaced.
Among the executives surveyed, those related to Evergrande Real Estate were relatively safe, while executives of Evergrande Wealth and Evergrande Life were investigated. This may be related to Evergrande's debt problem, Evergrande Wealth and Evergrande Life have more capital flow and operation in the financial sector, so they are more likely to be the focus of debt problems.
Xu Jiayin's ** is not because of the transfer of funds overseas, but because of Evergrande's huge debt problem. Mr. Xu's transfer of funds is just one of the steps he has taken to protect his personal wealth and avoid risks. For Xu Jiayin, the severity of Evergrande's debt problem exceeded his imagination, which led to the ** of him and Evergrande executives.
The recent news of Xu Jiayin** has caused widespread speculation and discussion. Although Xu Jiayin did transfer tens of billions of funds overseas, this is not his reason. In fact, Xu Jiayin's move of funds overseas was carefully planned and executed, and was not directly related to Evergrande's debt problems. The reason why Xu Jiayin is ** is because Evergrande is facing huge debt problems, which leads to the investigation and blocking of him and Evergrande executives. This incident reveals the challenges and constraints faced by Chinese entrepreneurs in terms of overseas operations and capital flows. We need to be objective and rational while understanding the reasons and motives behind the incident, and wait for the official investigation results to be announced.