The Evergrande Empire collapsed, and Xu Jiayin was arrested
In fact, as early as a few years ago, Xu Jiayin's Evergrande Group had already exposed serious financial problems. Especially in 2021, the company was exposed to a debt of up to 2 trillion yuan, which is simply unbelievable!
This is a clear indication that the giant ship could capsize at any time. But for a long time, Xu Jiayin and his team have covered up the truth through various means, and continued to send false signals to society that "everything is fine".
In fact, the fall of Xu Jiayin was not accidental. This seemingly sudden collapse has its inherent inevitability. Let's explore what caused Xu Jiayin to fall from a successful person to a wanted criminal.
This may serve as a warning to all those who pursue business success, not to follow Evergrande's example, but to stay clean and stay away from power and sex trading in order to go long-term.
Three reasons for the collapse of Evergrande
As we mentioned earlier, the rapid collapse of Evergrande Group is no accident, and it has deep internal causes.
First, it is the long-term extravagant and extravagant life of Evergrande executives. As the senior management of a large enterprise, they should take the lead in living a simple and frugal life, which is not only the need for the construction of corporate culture, but also a necessary means to establish an image and win the hearts of the people.
However, Evergrande's executives are clearly unaware of this. For example, the head of the company, Xu Jiayin himself, has not only adopted a beautiful song and dance troupe for many years, but also often goes in and out of various improper places.
This undoubtedly tarnishes the reputation of the enterprise. Employees may also emulate the higher-ups, leading to a loss of the overall atmosphere of the company. This is the number one reason for Evergrande's downfall.
Third, and most critically, Xu Jiayin has serious deficiencies in professional ability and professional ethics. As an entrepreneur, almost all of his business attempts except real estate have failed.
This has led to the loss of Evergrande to expand the industrial chain and the source of profits. At the same time, Xu Jiayin's personal morality is corrupted, his life is corrupt, and as a corporate decision-maker, he has lost his sober mind in judging things.
This is undoubtedly the last straw that crushed Evergrande.
To sum up, there are specific reasons for Evergrande's rapid demise. But all businesses should take this as a warning to prevent repeating the mistakes of the past. Only by returning to their duties, being honest and honest, can they make the enterprise stable and far-reaching.
Xu Jiayin has already laid out a way back for his family
Although Xu Jiayin appeared to the outside world to behave like a martyr before and after the collapse of Evergrande, more astute analysts pointed out that he had in fact quietly laid out a way out for his family long before the incident.
For example, Xu Jiayin let his wife Ding Yumei go to Canada and transferred at least 50 billion assets to her. For his eldest son, who is studying in the United States, he bought a trust fund of up to $2.3 billion.
's daughter, Xu Xiyun, has also settled in the United States. It is foreseeable that in the future, these children will become American and Canadian citizens and be decoupled from China forever.
Xu Jiaban's actions undoubtedly attracted scolding from the outside world.
Indeed, from the perspective of the common people, it is difficult for us to accept what Xu Jiayin did. But from his own standpoint, this may be understood as a kind of family sentiment of "taking the small self as the big self".
When the crisis came, he undoubtedly put the safety of his family above all else. Therefore, he had no choice but to sacrifice Evergrande, and even sacrifice himself, using this extreme means in exchange for the hope of three generations of single transmission.
Of course, such family feelings are selfish. It sacrifices the interests of thousands of ordinary families. This practice of treating the big self as the small self should be judged by history and the people.
Therefore, the downfall of Evergrande is not only a commercial tragedy, but also a moral landslide. It has brought us a profound enlightenment, an entrepreneur, in addition to having foresight, but also personality and ethics.
In order to truly establish a long-term business and benefit employees and society.
The truth about the arrest of the second son Xu Tenghe
As we discussed earlier, at the same time that Evergrande boss Xu Jiayin was arrested, there was another key member who could not escape justice, that is, his second son Xu Tenghe.
In fact, in the eyes of the outside world, the reason why Xu Tenghe was targeted by the police was mainly related to financial problems. In the past few years, he has been holding senior positions within Evergrande Group, in charge of finance and other work.
Therefore, as the holder of the company's "treasury", he should pay for Evergrande's shortfall.
But in fact, there is a deeper reason. That is, Xu Tenghe is not a good bird in itself. We have evidence that the young master had already shown a lavish lifestyle as early as his student days.
For example, while studying in the United States, he spent tens of millions of dollars a year, just for dating girls. He even flew a private jet between different cities in the United States.
This Xi of spending money on earth obviously created a dangerous drug addiction for him to embezzle in the future.
Sure enough, after Xu Tenghe returned to China and entered Evergrande, this way of life did not converge. is still frequently looking for flowers and willows, and spending. And he controls the company's coffers.
So it is not difficult to imagine that it is very likely that he took advantage of his position to embezzle a large number of company assets, which led to today's outcome.
Now, Xu Tenghe has finally paid for it. But we should also realize that he is only a typical example of the destruction of this family. The collapse of the entire Xu family team has a lot to do with the decline of morality.
This is a profound warning to us.
Who will repay the debts owed by Xu Jiayin?
Among them, a large part of the payment is the down payment paid in advance by ordinary people when buying a house. Now the house they started is halfway down, and they can't get their hard-earned money back.
It can be said that it is the real family that is ruined and the fate is sad. Therefore, legally and morally, this part of the debt should be repaid by Xu Jiayin personally.
But the problem is that with Xu Jiayin's current financial resources, he is obviously unable to repay the money.
These questions have not yet been clearly answered. At present, Xu Jiayin has only been arrested for a month. We hope that in the course of the trial of the case, the judicial department will fully consider the rights and interests of the people.
If the illegal gains transferred overseas, as well as other existing personal property of the Xu family, can be used to repay the losses of the buyers, then the interests of the common people can be protected to the greatest extent.
This is not only a legal obligation, but also a matter of course.
After all, ordinary people have gone bankrupt in pursuit of a house. If even the last bit of hope is dashed, it will lead to a loss of basic trust in society.
Therefore, repaying the losses of the people is the top priority of this case. It is a test of the will of the people and the credibility of the government.
Xu Jiayin is the inspiration of posterity
History often gives us profound inspiration. Looking back at the collapse of Evergrande at the end of 2023, we will find that it contains a lot of business ethics to think about.
First of all, the enterprise and the society is an organic unity, entrepreneurs can not only want to belong to their own small part of the interests, must have a sense of social responsibility, to achieve a win-win situation for enterprises, employees, and customers.
Second, an excellent entrepreneur must be clean and innocent, and must not take advantage of his position for personal gain. Corruption will eventually reap the consequences and destroy the life of the enterprise.
Thirdly, simple values must be established within the enterprise. A luxurious life will make people lose their rationality and shame, and eventually mistake themselves.
Finally, enterprises should adhere to diversification and sustainable development. A single profit model is too fragile and unsustainable once the industry changes. The collapse of Evergrande this time is a wake-up call for us.
It can be said that this is a multifaceted moral slide related to business. But we are sure that as long as we learn from the lessons, future Chinese entrepreneurs will be able to achieve a virtuous cycle and sustainable growth on the moral high ground.