Xu Jiayin, the CEO of Evergrande, was once considered the embodiment of the “Chinese dream.” But today, its fall is spectacular. The media report that the Chinese authorities have placed him under surveillance, even under house arrest. This news was closely followed by the suspension of trading of Evergrande shares, which reignited speculation about the short-term survival of the company.
Xu Jiayin has experienced a meteoric rise. Born and raised in a rural village in Henan province, he began his career in a steel company before founding Evergrande in 1996. Over the years, he managed to build his company into a real estate giant with more than 1,300 real estate programs in 280 cities. He has also extended his empire to other sectors, such as football, the sale of bottled water and even amusement parks.
However, Evergrande’s rapid growth strategy has started to show signs of fragility in recent years. As of 2021, the company accumulated over $300 billion in debt, which led to serious financial difficulties. Chinese authorities tried to rescue the company, but without success.
Xu Jiayin’s placing under surveillance perhaps marks the end of his brilliant career. Some believe that Chinese authorities could hold him responsible for the problems facing Evergrande. However, nothing is confirmed at the moment.
For Xu Jiayin, who was once considered a symbol of Chinese success, this situation represents a dramatic fall. His career, which began modestly, reached incredible heights. His possible involvement in the Evergrande crisis could change his status forever.
While Evergrande’s future remains uncertain, it is clear that this story speaks to the risks of the rapid growth model adopted by many Chinese companies. Chinese authorities are now seeking to stabilize the real estate market and avoid a major financial crisis.
The Evergrande affair highlights the challenges faced by many Chinese entrepreneurs. If the “Chinese dream” has allowed some to experience exceptional success, it has also led to excesses and economic instability. The fall of Xu Jiayin and Evergrande is a warning to companies seeking to expand rapidly without considering risks and financial stability needs.
In conclusion, the Xu Jiayin and Evergrande affair highlights the challenges of the rapid growth model adopted by many Chinese companies. While Xu Jiayin was once considered a symbol of success, his downfall represents a warning to those seeking quick success without considering financial risks. This story illustrates the importance of stability and prudent financial management in the business world.