Outburst! Evergrande crashed in the afternoon, what happened

On September 27, a rumor about Xu Jiayin had not yet been confirmed, which triggered a flash crash of Evergrande's stocks.

Evergrande stock flash crash

This afternoon, Evergrande's individual stocks plunged across the board.

By the close, China Evergrande shares plunged 18.99% to close at HK$0.32.

Shares of Evergrande Auto plunged 20% to close at HK$0.56.

Shares of Evergrande Property plunged 14.449% to close at HK$0.56.

Just a few days ago, Evergrande suffered a setback due to debt restructuring, which had already hit its stock price hard.

On September 24, China Evergrande announced that in view of the fact that Evergrande Real Estate is under investigation, the company's current situation cannot meet the qualifications for the issuance of new notes.

This directly affects Evergrande's debt restructuring.

In March, Evergrande announced that it had $19.149 billion of offshore debt to be restructured and offered three options for creditors, all of whom would need to issue new notes.

First, replace the old debt with new notes 1:1, with a maturity of 10-12 years.

Second, it converts into new notes with a maturity of 5-9 years, and converts them into a combination of equity-linked notes linked to Evergrande Property, Evergrande New Energy Vehicles or Evergrande's listed stocks.

Third, a combination of the above.

In addition, according to Evergrande's financial report, as of June 2023, China Evergrande's total liabilities were 2.39 trillion yuan, and after excluding contract liabilities of 603.98 billion yuan, it was 1.78 trillion yuan.

As of June 2023, China Evergrande's revenue was 128.18 billion yuan, and the total net loss was 39.25 billion yuan.

Debt is overpowered, operation is unfavorable, and Evergrande's stock has been voted by investors with their feet since it resumed trading.

Xu Jiayin's net worth is only 20 billion, which has shrunk by 90%

Since the suspension of trading in Evergrande's shares, in the past 18 months, Xu Jiayin's only appearances have basically been special meetings and monthly work meetings within Evergrande Group.

A month after the suspension of trading, Xu Jiayin appeared in Guangzhou Evergrande Center with his management team to create momentum for the first batch of Hengchi 5.

Xu Jiayin for Hengchi platform 5 Image source: Every real estate

However, since 2023, the official website of Evergrande Group and official micro platforms have not published internal information about Xu Jiayin's appearance.

The last time Evergrande Group published news about Xu Jiayin was on December 2, 2022, in order to refute rumors about Xu Jiayin himself at that time.

Xu Jiayin presided over the meeting of Evergrande Group Image source: Evergrande official micro

According to CaiLian News Agency, at 5 p.m. on July 24 this year, Xu Jiayin organized a meeting of Evergrande to ensure the handover of the building, which lasted more than half an hour. At the meeting, Xu Jiayin inquired about the situation of the Baojiao building of several regional companies.

Since 2023, Xu Jiayin's two public appearances and speeches have been through Evergrande football.

The most recent was on July 4 this year, Xu Jiayin presided over the management meeting of Evergrande Football Club, said that all the staff of the club should further carry forward the spirit of the new Guangzhou team of "wolf nature, collaborative struggle, perseverance and tempering elite", comprehensively select and boldly appoint outstanding young talents of Evergrande Football School, unswervingly take the road of "one-stop" talent training from Evergrande Football School to Guangzhou Team, and contribute to the development and revitalization of Chinese football.

At this time, Xu Jiayin has become the person to be enforced.

Five years ago, in August 2018, with the strong performance of the share price of Evergrande Health (now "Evergrande Auto") at that time, according to Forbes' real-time rich list at that time, Xu Jiayin's net worth reached 41.4 billion US dollars (about 300 billion yuan), making him the richest man in China.

According to the "2023 Hurun Global Rich List", Xu Jiayin's net worth is now only 20 billion, ranking 1100 in the world, more than 90% smaller than at the peak.