This year, a scandal over Evergrande's property has sparked public attention. Evergrande Property suddenly found that 13.4 billion yuan of deposits in its operating account were missing, which is a huge amount of money for this property company. Preliminary investigation revealed that the funds were transferred by Evergrande Group through a pledge guarantee from the bank. As a result, Evergrande Property indirectly became part of the liabilities of Evergrande Group, resulting in the company's insolvency and a significant decline in market value. The employees of Evergrande Property, as investors, were very dissatisfied with this, and Evergrande Group shirked their responsibilities, accusing Xu Jiayin of signing these documents without careful review, which led to the incident. Although there is no final outcome of Xu's handling of the matter, there is a widespread public belief that he will face significant financial and legal pressure.
Faced with the loss of funds, Evergrande Property decided to take legal measures to recover the transferred deposits. They filed a lawsuit against Evergrande Group, demanding that the company return the 13.4 billion yuan of lost funds. This move is to protect the interests of Evergrande Property and fill the company's huge financial gap. Evergrande Property realised that only by recovering the funds could the company continue to operate and maintain its reputation as a quality property company. The litigation is ongoing, and the outcome will have a profound impact on Evergrande Property and the entire Evergrande Group.
Xu Jiayin's misappropriation of Evergrande property's deposits was a self-defeating move. In fact, if he hadn't transferred the 13.4 billion yuan, Evergrande Property could have become a company with a market value of tens of billions of yuan. What's more, when Evergrande exploded in 2021, Evergrande Group had already reached a transaction agreement with Hopson Development, which intended to purchase all Evergrande property shares in Evergrande Group's hands for 20 billion yuan, accounting for about 50%. However, due to the disappearance of the $13.4 billion deposit, the transaction was eventually suspended. If Xu Jiayin hadn't transferred this fund at that time, he might have succeeded in raising 20 billion yuan to save Evergrande Group. Unfortunately, his mistakes in decision-making led to immeasurable consequences. Today, Evergrande Group has a debt of 2With 3 trillion yuan, reviving the momentum is almost an impossible task.
Xu Jiayin's prospects are undoubtedly bleak. Take Zhou Shiping, the founder of Hongling Venture Capital, who was arrested in 2021, as an example, who was sentenced to life imprisonment for the thunderstorm of Hongling Venture Capital. And Xu Jiayin's problem is much more serious than Zhou Shiping's. Although there is no specific information about Xu Jiayin, judging from similar cases, he may face similar or heavier criminal liability. In addition, he will be exposed to financial risks such as huge debts and corporate bankruptcy. It can be said that Xu Jiayin's future is bleak, and he will pay a heavy price.
The case of Evergrande Property being misappropriated by Evergrande Group instantly became the focus of society, triggering public concerns about the chaos of domestic real estate giants. The incident not only exposed financial problems and management loopholes within the Evergrande Group, but also involved the negligence and inaction of senior executives. This is an opportunity for us to reflect on the chaos in the real estate industry and the importance of regulation. In addition, as investors, we also need to be wary of various investment pitfalls and carefully evaluate the company's financial status and management strength.
In short, the misappropriation of 13.4 billion yuan of deposits by Evergrande Property is a serious incident involving the internal interests and responsibilities of Evergrande Group. Evergrande Property protects its interests through deposit recovery and lawsuits, and strives to fill the huge financial gap. However, Xu's mistaken decision has made the situation even more serious, and he will face a double whammy of legal and financial problems. This incident is a reminder of the need for investors to remain vigilant and to push for more regulated and transparent corporate governance. Only in this way will we be able to build a healthier and more trusting business environment.