Xi Jinping rushed to crack down on anti-Xi forces before the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China. China Evergrande and Xu Jiayin became important bargaining chips. According to legend, after the authorities ordered Xu Jiayin to contribute personally to relieve his difficulties, on October 29, the Wall Street Journal quoted people familiar with the matter as saying that Evergrande paid an overdue dollar bond interest at the end of the 30-day grace period to avoid default again.
The report revealed that Evergrande paid coupons originally due on September 29. According to CreditSights, a bond research company, Evergrande needs to pay approximately US$45 million in interest on US$951 million bonds, which will mature in 2024.
The Wall Street Journal said that Evergrande paid these payments at the last minute, so it bought time to deal with finances and negotiate with creditors; if Evergrande misses any of these grace periods, the incident will evolve into Asia’s largest corporate default.
Last week, Evergrande unexpectedly paid US$83.5 million in interest on another batch of US dollar bonds before the grace period expired. Bloomberg subsequently revealed that the Beijing authorities had told Xu Jiayin that he must use his personal wealth to alleviate Evergrande’s debt crisis.
Although the outside world is not sure whether the two coupons paid by Evergrande came from Xu Jiayin’s personal wealth, Xi Jinping’s tough stance against Xu Jiayin during the Evergrande crisis is indeed obvious to all.
Xie Tian, a professor at the Aiken School of Business at the University of South Carolina in the United States, analyzed NTDTV that if, but from a business, economic and legal perspective, Xu Jiayin could not be allowed to personally fund the repayment of the company’s debts, but Xi Jinping did so, there are internal struggles behind it. And political factors, because as the white glove of the CCP’s nobles, the wealth that Evergrande grabs may not be in the hands of Xu Jiayin, and more of it is in the hands of the nobles.
We media LT Vision also stated in the latest live broadcast that the authorities demanded Xu Jiayin’s personal debt repayment, not to mention that a drop in wages might not help, and if it were to compare similar cases with Anbang Wu Xiaohui and Hainan Airlines Chen Feng Xiao Jianhua, the authorities would The handling method is also very special.
LT Vision said that the authorities did not ask Wu Xiaohui to use his personal assets to repay Anbang’s debts. Instead, they cleared Wu Xiaohui’s shares. The authorities took over Anbang. Then Wu Xiaohui went to jail. The same method was applied to HNA, and Chen Feng was not asked to sell. Two mansions purchased in Manhattan, New York, to pay off debts.
The reason for this difference, LT believes, “There is only one possibility, that is, there are people behind Wu Xiaohui who cannot collect money and cannot force him to take it out. For example, the Deng Xiaoping family cannot force him to take it out; Chen Feng is also the same. The CCP currently does not pursue Chen Feng’s assets, nor does it follow Chen Feng’s younger brother’s assets. This also reflects some of the powerful and powerful behind HNA, which Xi Jinping does not want to offend.”
“Then force Xu Jiayin to pay out. If Xu Jiayin pays too much, Xu Jiayin will also force the corrupt officials behind him to take out the money.” LT speculates that the reason why the regulator did this was at least to send a message to the outside world. I’m too afraid to offend the boss behind Xu Jiayin, or Xi Jinping doesn’t care much about whether the boss behind Xu Jiayin is too happy.”
LT believes that Xu Jiayin’s ending will be worse than Wu Xiaohui and Chen Feng.
Since the crisis of Evergrande, various media have counted the CCP’s powerful figures behind Xu Jiayin.
The New York Times reported on Evergrande’s shareholding structure in September, showing that in addition to Wen Jiabao, there is the Jia Qinglin family behind the group. In his latest book “Red Roulette”, Desmond Shum also recalled Xu Jiayin’s experience in 2011 accompanied by Jia Qinglin’s daughter Jia Qiang and son-in-law Li Botan to Europe. In addition, Xu Jiayin’s fortune is inseparable from Hong Kong and Hong Kong rich people, which paved the way for him to establish contact with Zeng Qinghong’s younger brother Zeng Qinghuai, and Zeng Qinghong’s son Zeng Wei.
Looking back on the family history published by the Xu family, during the period when Jiang Zemin used to condone corruption in exchange for official support, Xu took advantage of the collusion between the powerful and the capital to grow stronger, and when Xi Jinping came to power to attack the white gloves of the powerful, Xu Jiayin began to fall into decline. .
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