Home Business Can’t the Chinese authorities save it?Rumors require Xu Jiayin to use personal property to repay Evergrande debts | TechNews

Can’t the Chinese authorities save it?Rumors require Xu Jiayin to use personal property to repay Evergrande debts | TechNews

by news dir

Bloomberg pointed out that China Evergrande failed to pay the interest on USD bonds as scheduled on September 23. According to sources, the Chinese authorities asked Xu Jiayin to use his personal assets to alleviate the deepening debt crisis. This hints at signs that China may be unwilling to rely on government planning and rescue.

The source said that the local government in China is monitoring Evergrande’s bank accounts to ensure that the company’s funds are used for unfinished housing projects and not for payments to creditors.

It is currently uncertain whether Xu Jiayin’s assets are sufficient to reduce Evergrande’s considerable liabilities. As of June, Evergrande’s liabilities have swelled to more than US$300 billion. Judging from the Bloomberg Billionaire Index, Xu Jiayin’s net assets have shrunk from a peak of US$42 billion in 2017 to about US$7.8 billion today, bringing great uncertainty.

According to reports, most of Xu Jiayin’s known wealth comes from Evergrande’s holdings and the cash dividends received from the company since its listing in Hong Kong in 2009. According to Bloomberg’s calculations, Xu Jiayin has received approximately US$8 billion in the past 10 years, and it is currently uncertain whether he will reinvest these dividends.

(Source of the first image: Evergrande Group)

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