On September 28, 2023, Xu Jiayin, chairman of the board of directors of China Evergrande, has been taken compulsory measures on suspicion of violating the law and committing crimes.
According to people familiar with the matter, Xu Jiayin and Ding Yumei have two sons, the eldest son Xu Zhijian, graduated from Tsinghua University, and was the vice president of Evergrande Real Estate, responsible for the management of the group's property and gardens. may have predicted today's situation, Xu Zhijian had permanent residency in Canada very early, etc. The second son, Xu Tenghe, a Harvard turtle, is the vice president of Evergrande Real Estate Group, who once led the work of Evergrande Wealth and is regarded as the best person of Xu Jiayin.
On February 26, 2024, Ding Yumei filed a lawsuit with the High Court of Hong Kong, demanding that her second son Xu Tenghe repay the Hong Kong dollar and US dollar loans, equivalent to more than 1 billion Hong Kong dollars, or a total of about 9 yuan6.9 billion yuan.
According to the complaint, according to the loan agreement signed between the plaintiff and the defendant on 16 June 2020, the defendant failed to repay the loan to the plaintiff on the agreed repayment date, and therefore the plaintiff recovered from the defendant the outstanding amount of HK$7$324.8 billion, including loan principal amount of HK$500 million, interest of HK$45 million and daily overdue interest of over HK$180,000; US$40.97 million, comprising principal amount of US$30 million, interest of US$2.7 million and daily overdue interest of US$8.27 million.
According to people familiar with the matter, Xu Jiayin's second son, Xu Tenghe, was taken away before Xu Jiayin was subjected to coercive measures. At the same time, Ding Yumei is already abroad and holds a Canadian passport.
Earlier, in a series of announcements announced by China Evergrande on the evening of August 14, 2023, Ding Yumei was referred to as a "third party independent of the company and its affiliates", and was not generally listed as Xu Jiayin's spouse as before, and a person familiar with the matter said that Ding Yumei and Xu Jiayin divorced in 2022. This move is intended to transfer property through "technical divorce", so that Ding Yumei can divide the financial relationship with Xu Jiayin and avoid debt and other problems.
China Evergrande's financial report shows that in 2021, China Evergrande's total assets will be about 21 trillion yuan, while the total debt is 258 trillion yuan, net assets of about 473.1 billion yuan; In 2022, China Evergrande's total assets will be about 184 trillion yuan, with total liabilities of about 245 trillion yuan, net assets of about 599.1 billion yuan.
Ding Yumei's second son, Xu Tenghe, is deeply involved in many affairs of Evergrande. Xu Tenghe has participated in many Evergrande affairs in recent years, and all of them belong to management positions. He has served as the chairman of Evergrande Group's Pearl River Delta Company for many years, and has also been responsible for the important work of Evergrande Wealth.
On September 16, 2023, Shenzhen Nanshan Public Security WeChat *** issued a case report showing that criminal coercive measures were taken against Evergrande Financial Wealth Management (Shenzhen) Du and other suspected criminals. On August 31, Evergrande Fortune's official WeChat announced that because the company's asset disposal progress was not as expected and the asset disposal funds were not obtained, the company could not carry out this month's payment, and the follow-up payment arrangement company will be announced separately.
Before Xu Jiayin declared the bankruptcy of Evergrande's property, he set up a single family trust for his son with a total amount of 2.3 billion yuan**, which was called the "rich second generation protection plan" that Xu Jiayin gave to his son. However, Xu Jiayin and his second son are afraid that they will have to sit in prison in China, and they are afraid that this money will be spent for life.
As a result, Ding Yumei hired a team of world-class lawyers in Canada, hoping to help Xu Jiayin and his son mediate and preserve as much property as possible.