Shocking conspiracy revealed Evergrande, which owes trillions of debts to the Chinese, turned out to be a foreign company
Introduction: In Evergrande"Thunder"Few people realize that this giant, which has made countless Chinese pay hard-earned money, is actually an offshore company registered in the British Cayman Islands. It is unbelievable that Xu Jiayin, the founder and legal representative of Evergrande, is the owner of a foreign company. However, this is not a coincidence, but an elaborate conspiracy. Next, let's find out the truth about Xu Jiayin's company registration in the Cayman Islands.
The Cayman Islands: The birthplace of tax havens.
The Cayman Islands are located in the western Atlantic Ocean and are barely visible on the map. This three-island area is only a quarter of Hong Kong's and half of Beijing's Chaoyang District. Historically, the Cayman Islands was a transit point for the British Empire's slave trade. In order to promote economic development, the island has set extremely low company registration thresholds and tax rates, making it the world's most famous tax haven and money laundering mecca.
In the Cayman Islands, anyone can easily register a company without any qualifications and even engage in illegal activities. There is no income tax or VAT to be paid for the registration of the company, and only a one-time processing fee and annual management fee are payable. In addition, registered companies do not need to set up a registered office or submit financial reports, so they enjoy a high level of privacy. As a result, over the decades, the Cayman Islands has attracted thousands of companies to register here, including banks, trusts, and financial institutions such as **.
Xu Jiayin and the rise of Evergrande Group.
Xu Jiayin founded Evergrande Industrial in Guangzhou in 1996. With his experience and keen business acumen in the CUHK and China's real estate markets**, he quickly became a rising star in the industry. However, he is not satisfied with this, but plans to go public to further expand his market share.
PricewaterhouseCoopers assisted Evergrande in completing the listing process. With their familiarity with the laws and regulations of the Cayman Islands, they helped Evergrande complete a series of operations to register a company in the Cayman Islands and list in Hong Kong. On June 26, 2006, Evergrande Real Estate Group*** was incorporated in the Cayman Islands, and less than four years later, on November 5, 2009, Evergrande was successfully listed on the Hong Kong Stock Exchange. Evergrande's share price was 34 percent higher than the issue price at one point28%, becoming the foreign-funded enterprise with the highest initial market value in Chinese mainland.
Designing conspiracies: tax evasion and property transfers.
Evergrande has successfully avoided hundreds of billions of dollars in taxes by registering a company in the Cayman Islands. This tax haven gives Evergrande a natural advantage that allows it to pay three-quarters less tax. At the same time, Xu Jiayin and his family have used this money laundering mecca to successfully transfer hundreds of billions of dollars.
What's even more sinister is that Xu Jiayin took advantage of the legal provisions of the common law system to successfully file for bankruptcy protection in the United States. This means that Evergrande can get rid of debt and further consolidate ownership. The brilliance of this conspiracy is that Xu Jiayin seems to have anticipated Evergrande's financial problems years ago, thus paving the way for it.
Conclusion: Behind the conspiracy and collapse.
Evergrande and Xu Jiayin's previous successes were all based on falsehoods and forgeries. However, this false success will eventually fall apart. Xu Jiayin had long anticipated this outcome and therefore carefully planned to register a company in the Cayman Islands. From tax evasion to the transfer of funds to bankruptcy protection, every step has laid the foundation for Evergrande's future and left a back door.
In this story, not only the conspiracy of Evergrande and Xu Jiayin is exposed, but also the secrets of the Cayman Islands as a tax haven are revealed. This small place hides huge interests and intrigues. We must be vigilant and not be blinded by the undercurrents lurking behind these superficial good things. Only by heightening vigilance can we truly protect our own interests and rights Note: The above text is only fiction and does not represent the real situation. Evergrande is a Chinese real estate company, and Xu Jiayin is its founder. The Cayman Islands is an international financial center with many favorable conditions that attract a large number of international companies to register. Check out Evergrande's financial status and true information about Xu Jiayin's business practices.