Industry: Xu Jiayin can no longer control Evergrande
[Epoch Times November 27, 2021](Epoch Times reporter Liu Yi comprehensive report) China Evergrande founder Xu Jiayin sold 1.2 billion Evergrande shares on November 25, cashing out 2.7 billion Hong Kong dollars (approximately 2.2 billion yuan). . After the reduction, Xu Jiayin’s shareholding ratio fell below 70%.
The Hong Kong Stock Exchange’s “Notice to Major Shareholders” on November 26 showed that Xinxin Co., Ltd. owned by Xu Jiayin completed the sale of 1.2 billion Hengda Group shares off-market on the 25th, at a cash consideration of HK$2.23 per share; this reduction in holdings Later, Xu Jiayin’s shareholding ratio dropped from 70.97% to 61.88%.
Reuters reported that Xu Jiayin’s wife Ding Yumei held about 792 million shares of Evergrande Group through her wholly-owned company Yaohua/Junrong Holdings. There was no change. Therefore, Xu Jiayin and his wife’s shareholding in Evergrande Group dropped from 10.162 billion shares, or 76.96%, to 8.962 billion shares, or 67.87%.
Caixin.com reported on November 26 that Xu Jiayin sold a share price of 2.23 Hong Kong dollars at a discount of about 20% from China Evergrande’s closing price of 2.79 Hong Kong dollars per share on the 25th. On November 26, Evergrande’s share price fell 10.39% to close at HK$2.5 per share, but it was still higher than the placement price of Xu Jiayin. According to the latest closing price on the 26th, the value of the remaining China Evergrande shares held by Xu Jiayin is approximately HK$22.4 billion (approximately RMB 18.3 billion).
Evergrande Group is in a debt crisis. Reuters quoted two people familiar with the matter as saying that the Chinese Communist Party asked Xu Jiayin, 63, to use part of his personal wealth to help the financially troubled Evergrande Group pay bondholders. Under pressure from the authorities, Xu Jiayin is trying to sell artworks, calligraphy works, and two high-end residences to repay his debts.
In November, China Evergrande has sold two overseas subsidiaries of China Evergrande New Energy Automobile Co., Ltd. (Hengda Automobile)-e-Traction Europe BV (e-Traction) headquartered in the Netherlands and Auto Technology headquartered in the United Kingdom The company Protean Electric. Among them, e-Traction, which was purchased for 500 million yuan (78.22 million US dollars) two years ago, only sold for approximately 14.52 million yuan (about 2.27 million US dollars).
In addition, Xu Jiayin also mortgaged two luxury homes in Hong Kong. The Wall Street Journal cited sources familiar with the matter on November 5 and revealed that China Evergrande Group raised more than US$50 million in October through the sale of two private planes.
At the end of September, a subsidiary of China Evergrande sold nearly 20% of the shares of Shengjing Bank to Shenyang Shengjing Financial Holding Investment Group, cashing in nearly RMB 10 billion.
In addition, China Evergrande continuously sold Hengteng Network shares on November 4 and 5, cashing in about 717 million Hong Kong dollars in total. The Wall Street Journal reported on November 21 that China Evergrande said on November 25 that it planned to sell all its shares in the Hong Kong-listed film and television production company for 2.13 billion Hong Kong dollars (approximately US$273.5 million).
Commentator Wang Jian stated in his self-media program on November 26 that Xu Jiayin has recently accelerated the pace of selling Evergrande assets, which is different from the speed at which he sold assets before, which has now been significantly accelerated. If Xu Jiayin used to sell assets at discounts to repay debts like now, Evergrande would not be where it is today. This shows that Xu Jiayin made a wrong calculation from the beginning. He believes that the CCP will save Evergrande. It also shows that Xu Jiayin can no longer control Hengda. Now the CCP is controlling Evergrande.
Editor in charge: Lin Congwen
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