In 2021, Evergrande Property was exposed to the disappearance of 13.4 billion deposits, and this huge amount of funds was misappropriated by Evergrande Group. Evergrande Group transferred the funds through the bank's pledge guarantee, but was unable to repay. Evergrande Property has suffered a huge blow due to its own small property company with limited annual revenue. The company's liabilities are far greater than its assets, and its market value has fallen from nearly 100 billion to several billion. The incident sparked dissatisfaction among investors, who were dissatisfied with Evergrande's handling of the situation.
In this incident, Evergrande Group adopted the method of letting Xia Haijun and three other executives resign, making them scapegoats. Xu Jiayin's explanation for the incident was that the documents were signed in his name, but he did not read them carefully, and no one reminded him because of the excessive number of documents. Xu Jiayin hopes to respond in this way in order to calm the situation. However, in September of this year, he was still arrested. There is no new information yet, but according to similar cases, it can be known that like Zhou Shiping, the founder of Hongling Venture Capital, who was arrested in 2021, Xu Jiayin's problem may be ten times more serious than him. Now, Evergrande Property chose to sue Evergrande Group, in fact, for the protection of its own interests, and their intention to recover the 13.4 billion funds is very clear.
Looking back on the situation at that time, Xu Jiayin's misappropriation of Evergrande Property funds was actually causing trouble for himself, which is not an exaggeration. At that time, if he had not transferred the 13.4 billion funds, Evergrande Property would still be an excellent company with a market value of tens of billions of yuan. Moreover, when the Evergrande Group crisis broke out in 2021, he had reached an acquisition agreement with Hopson Development, which planned to acquire all Evergrande property shares held by Evergrande Group with 20 billion yuan, accounting for about 50% of it. However, due to the disappearance of this deposit, the deal could not be completed in the end, and the result was naturally that Xu Jiayin's plan fell through. If Xu Jiayin hadn't embezzled the 13.4 billion at that time, he might still be able to **Evergrande Property** to raise 20 billion funds to provide financial guarantee for the rescue of Evergrande Group. Unfortunately, he ended up putting himself in an irreversible predicament.
Today, Evergrande Group has a debt of 23 trillion, it is not easy to turn the situation around.
Evergrande Property's move to recover the 13.4 billion funds is of great significance to itself. After filling this huge loophole, Evergrande Property will be able to recover as a good company. Therefore, this time Evergrande Property took Evergrande Group to court out of its own interests.
It is worth mentioning that Xu Jiayin's wrong behavior not only caused huge losses to Evergrande Property, but also dealt a major blow to the company's investors. Due to the continuous negative events of Evergrande Group, investor confidence has been seriously shaken, and the company's market value has been greatly reduced. The lawsuit is also a way for investors to defend their rights, hoping to recover their losses through legal means.
After Xu Jiayin was arrested, Evergrande Property chose to sue Evergrande Group to recover 13.4 billion deposits, for its own interests, but also to protect the rights and interests of investors. This incident revealed Xu Jiayin's major mistake, his misappropriation of Evergrande property funds, which put Evergrande Group in a very difficult situation. He could have led Evergrande Group to recovery through sound financial arrangements and marketing strategies. However, his wrong decisions eventually led to the company's huge liabilities and market capitalization.
My personal view on this incident is that an entrepreneur should have a high sense of responsibility and decision-making ability, and cannot be blinded by the immediate interests. Xu Jiayin's mistake not only caused great harm to himself and the company, but also had a negative impact on investors and the industry. In a market economy, integrity and transparency are important assets of a business, and entrepreneurs should always take this as a criterion and pay attention to protecting the interests of investors and the stability of the market.
In short, after Xu Jiayin was arrested, the case of Evergrande Property choosing to sue Evergrande Group has attracted widespread attention. Evergrande Property hopes to recover the huge amount of misappropriated funds through legal channels and restore its goodwill and credibility. In this case, we should also reflect on and be vigilant against the decision-making behavior of entrepreneurs to avoid similar negative impacts from happening again. The sustainable development of enterprises is inseparable from the adherence to responsibility and integrity, so as to truly win the trust of the market and investors, and move towards success.