Xu Jiayin was arrested, and the Evergrande building is also in danger, and it may collapse at any time, although Evergrande has not yet reached the step of bankruptcy, but the foundation has been completely shaken.
Seeing Xu Jiayin's situation today, I believe that many people never expected it.
Xu Jiayin is also a very legendary and inspirational figure, he was born in a rural family in Henan, when he was a child, his family was very difficult, when he went to school, he ate some blackened wowotou, and the quilt covered with his clothes was full of patches.
But the days of poverty did not let Xu Jiayin lose his will, but aroused his determination to change his life, and through his own efforts, he went to university, and then was assigned to a state-owned steel factory.
In the steel factory, Xu Jiayin's promotion was also very fast, and he became the assistant to the workshop director within two months of entering the factory, and later became the deputy director of the workshop and the workshop director at a very fast speed.
It's just that in 1992, Xu Jiayin felt that as a middle-level cadre in the steel factory, his promotion space had reached the top, and it was estimated that there was no room for improvement if he stayed any longer, so he resolutely threw away his iron job and went south to Shenzhen to work.
During his stay in Shenzhen, he helped a boss develop a real estate, and the boss made a lot of money, but Xu Jiayin's return was very low.
After years of development, Evergrande has become one of the largest developers in China under the leadership of Xu Jiayin, and at its peak, in 2020, Evergrande's contracted sales exceeded the 700 billion mark, becoming one of the few developers in China that can reach more than 700 billion yuan in contracted sales.
While Evergrande is developing rapidly like a rocket, Xu Jiayin's wealth has also soared, and in 2017, Xu Jiayin became the richest man in China with a wealth of more than 200 billion.
It can be said that Xu Jiayin's achievements and the wealth he has earned are impossible for the vast majority of people in the world to achieve in their lifetime.
For Xu Jiayin's achievements, in addition to his own efforts and good opportunities, many people think that Xu Jiayin has the help of nobles behind him to achieve such great achievements.
Especially when Xu Jiayin was arrested, many people speculated about who Xu Jiayin's "backstage" was, and even some self-media fabricated some so-called backers behind Xu Jiajun, but these are groundless, there is no real evidence, and the backstage of Xu Jiayin that some netizens said is actually just some ordinary partners or some people who have met one or two faces.
In fact, who is the real "backstage" behind Xu Jiayin? There is still no answer, but I think the reason why Xu Jiayin has been able to achieve such brilliant achievements in the past ten years is actually the hardest "backstage", that is, the vast number of home buyers in China.
A large part of Xu's success is due to the fact that he has seized the opportunity of the rapid development of China's real estate.
Since the nineties of the last century, with the continuous increase of the urban population in the mainland, the contradiction of urban housing has begun to appear, and Xu Jiayin also predicted that there will be great market opportunities for commercial housing.
In 1994, Xu Jiayin, who worked in Shenzhen, persuaded his boss to set up a company called Pengda Real Estate in Guangzhou, the company's first project was the Zhudao Garden in Guangzhou.
In 1997, Xu Jiayin quit his original job, went to sea and established Evergrande Real Estate Company.
Since 1998, the mainland has carried out housing reform, and the mainland commercial housing has officially ushered in a golden development cycle, after the cancellation of housing allocation, housing began to be dominated by market supply, and then the mainland's commercial housing officially ushered in a period of concentrated outbreak.
The establishment of Evergrande just caught up with the best opportunity for housing reform in the mainland, and it was by seizing this opportunity that Evergrande was able to play with ease.
In addition, in the past few decades, the mainland has developed rapidly in urbanization, with the annual increase in urban population reaching more than 10 million or even more than 20 million.
In the context of the rapid growth of urban population, the group of buyers is getting bigger and bigger, and the demand for commercial housing is becoming more and more vigorous, which directly allows major developers to lie down and make money.
Thanks to the continued stable performance of the property market, the confidence of the whole market in the property market is also very full, whether it is builders, material suppliers or banks are full of confidence in the property market, everyone is willing to lend money or credit to developers.
In this special environment, many developers do not need to have too much capital, only need to have about 30% of the start-up capital, and the rest of the money can be borrowed from the bank, on credit to suppliers, or sold off-plan properties to buyers to obtain funds for rapid expansion.
All of this is actually based on the premise that the property market is in short supply, so the most fundamental reason why Evergrande has been able to develop rapidly in the past ten years is that the consumer group in the property market is very large, which has supported Evergrande for more than ten years.
Therefore, Xu Jiayin's biggest "backstage" is actually China's vast number of consumer groups, without the support of a huge consumer group, Evergrande would not have come to this point, even if Xu Jiayin has great ability, no matter how great the noble people to help him, it is impossible to achieve today's achievements.
It's a pity that Xu Jiayin was not able to retreat bravely when he achieved results, and around 2016, in fact, the property market has begun to have some crises, when many developers have been actively transforming, including Wanda, Vanke are actively seeking to turn.
But even if there are some not very good signals in the property market, Xu Jiayin still vigorously borrows to expand, trying to take the throne of China's largest real estate company, and even for this reason they also issued a lot of perpetual bonds, officially these debts directly pulled Evergrande off the altar, when Evergrande's debt reached more than 2 trillion, even if the market has a large number of consumer groups these "backstage" help has been useless.