After Xu Jiayin was arrested, Evergrande Property sued to recover 13.4 billion deposits
Preface. In 2021, Evergrande Real Estate's 13.4 billion deposits suddenly disappeared and were siphoned off by Evergrande Group. The transfer of this huge amount of money is guaranteed by the pledge of the bank, and Evergrande Real Estate, as a limited company, has an annual income of only a few hundred million, and how to fill this huge hole has become a big problem. Evergrande Real Estate had to face bankruptcy, and its market value fell from nearly 100 billion to several billion.
Executives who are held accountable.
Faced with this situation, Evergrande Group sent Xia Haijun and other three executives to resign and let them take full responsibility. It is generally believed that only Xu Jiayin's nod caused this to happen. But Xu Jiayin explained that the document was signed by himself, and because there were too many documents, he did not read it carefully at that time, and no one reminded him. Xu Jiayin wanted to get away with it, but he didn't expect that he would still be in prison in September this year. There isn't much news about him at the moment, but we can look at the case of Zhou Shiping, the founder of Hongling Ventures, who was recently convicted. Zhou Shiping was finally sentenced to life in prison in 2021 when Hongling Ventures collapsed and failed to pay more than $20 billion in arrears**. It is foreseeable that the problems faced by Xu Jiayin may be ten times greater than that of Zhou Shiping, and everyone can speculate on their own.
Legal action against Evergrande Real Estate.
Now, Evergrande Real Estate has filed a lawsuit against Evergrande Group for the purpose of recovering the 13.4 billion yuan in deposits. For Evergrande Real Estate, as long as it fills this huge hole, it is a high-quality enterprise. Therefore, this lawsuit is really a self-preservation move. This is also the result of Xu Jiayin lifting a stone to shoot himself in the foot. Why?If Xu Jiayin had not embezzled 13.4 billion at that time, Evergrande Real Estate could continue to maintain a market value of tens of billions. In 2021, Evergrande Group reached an agreement with Hopson Development, and Hopson Development plans to acquire Evergrande Real Estate shares in the hands of Evergrande Group for 20 billion **, accounting for about 50%. However, the deal was ultimately aborted due to the disappearance of the $13.4 billion deposit. If Xu Jiayin hadn't embezzled the money at that time, he could have ** these shares in the future and raise 20 billion to save Evergrande. Unfortunately, he got the retribution he deserved, and now Evergrande has a debt of 2.3 billion, and it will not be easy to turn the situation around and get back on his feet.
Summary of Argument: Analyzing the entire incident, it can be clearly seen that Xu Jiayin's misappropriation has caused huge losses to Evergrande Real Estate and Evergrande Group. His negligence and misjudgment led to the insolvency of Evergrande Real Estate, the market value of **, and the termination of Evergrande Group's main agreement with Hesheng. Xu Jiayin's embezzlement not only seriously affected the company's operations, but also led to economic losses and legal risks. Evergrande Real Estate can only resort to legal procedures to protect itself, trying to recover huge sums of money, hoping to plug the hole and resume normal operations. However, the actual results are still unknown. This case also reminds us once again that important business operators must maintain professional ethics and a sense of responsibility, and cannot be reckless for personal gain, so as not to cause huge losses to enterprises and investors.
Conclusion. This case teaches us a valuable lesson. As an entrepreneur, Xu Jiayin could have safeguarded the company's reputation and interests by operating in good faith and abiding by the law, but he chose to embezzle huge sums of money to deal with the difficulties, a choice that only deepened the crisis and ultimately caused serious consequences. We should take this as a warning, always remember to operate in accordance with the law, adhere to integrity, and be responsible to investors and partners. Only by abiding by laws and regulations and adhering to the right business path can enterprises thrive and achieve sustainable success. We must also understand that a person's bad decisions and actions will not only bring regret and loss to themselves, but also have an immeasurable impact on others. Therefore, we must continue to strengthen our own quality and moral cultivation, be a responsible and far-sighted entrepreneur, and make positive contributions to the development and progress of society.