Have you ever doubted how Xu Jiayin transferred tens of billions of dollars?
Xu Jiayin will be arrested in 2023, and after he was listed on Evergrande, he has received more than 50 billion dividends from Evergrande. The cash had already been transferred to a foreign country.
To understand how Xu Jiayin transferred assets, it is necessary to understand the offshore structure set up by Xu Jiayin. Mr. and Mrs. Xu Jiayin set up an offshore company, Xinxin BVI Co., Ltd., in the Cayman Islands and the British Virgin Islands, to hold China Evergrande, a Hong Kong-listed company.
China Evergrande then holds an operating entity in the Mainland. Theoretically, Evergrande has always been a foreign-funded company, but many people don't know it.
To put it simply, Xu Jiayin's structure is North America, offshore companies, Hong Kong, and the mainland. Of course, the specific operation is much more complicated. For example, in Hong Kong, there are as many as 11 affiliated companies of the Xu Jiayin family, of which 9 are offshore companies after the equity penetration.
Xu Jiayin's establishment of this structure was not something that Evergrande did before and after its listing. He set up the AJI Group in Hong Kong as early as 1995. In 1996, Xu Jiayin set up Guangzhou Kailong Company, the predecessor of Evergrande, in Guangzhou.
This shows a problem, Xu Jiayin has been prepared in the early stage of entrepreneurship. With this offshore structure, Xu Jiayin can logically transfer funds to foreign countries.
Evergrande made money from projects in the mainland, and the funds naturally went into the hands of China Evergrande, a Hong Kong-listed company controlled by the company. At the same time, China Evergrande paid dividends, and these huge dividends went into the hands of the offshore company set up by Xu Jiayin.
After arriving at the offshore company, the funds are transferred very freely, and no one knows where they go. It is through such an offshore structure that Xu Jiayin can easily transfer the profits he made in the mainland to foreign countries.
Xu Jiayin's eldest son and ex-wife Ding Yumei both have permanent residency in Canada, and it is estimated that most of the funds also went to the North American market. Previously, it was reported that Xu Jiayin had set up a $2.3 billion trust fund in the United States.
In this way, they can separate their personal debts from their assets. Even if the creditors chase them to the United States in the future, they will not be able to touch the assets in the trust fund.
In fact, Zhang Lan, the boss of South Beauty, also set up such a structure, and she even became a foreign citizen. However, the trust fund she set up was later breached.
Xu Jiayin is indeed very smart, and the structure he has set up is almost impeccable both from the legal level and the practical level.
But what he didn't expect was that his money went out, but he didn't make it. Although Xu Jiayin was only arrested in September, it is estimated that he has long been controlled, and he can't leave if he wants to.
In fact, for many Chinese billionaires who go to foreign countries, in fact, going to foreign countries is not worry-free. Changpeng Zhao, the founder of Binance, went to foreign countries very early, and he himself has Canadian and Emirati citizenship.
This year, however, he was fined more than $4 billion by the United States. The key is that Changpeng Zhao has now been deceived into going to the United States, and the Americans are now taking Changpeng Zhao's money and detaining his people.
These rich people are not worrying when they go to foreign countries, and those European and American countries can also harvest them at any time. Xu Jiayin's ex-wife Ding Yumei went to a foreign country, but it was not easy for her to keep their tens of billions of dividends.
If it is proved that there is indeed a problem with these dividends after investigation, the state will definitely find a way to recover the money and use it to solve Evergrande's problem of guaranteed delivery of buildings and debts.
Now that I think about it, Xu Jiayin has set up an offshore structure early, and he probably knows that his way of doing business can thunder at any time, and he is ready to turn it up at any time.
It is estimated that he himself did not expect that after he started his business in 1996, he would be able to continue to break through. Xu Jiayin's method of empty gloves and white wolf, as long as there is a problem in one link, the whole business will have problems.
But he was really lucky, the first was to meet the golden 20 years of China's real estate, and the second was to meet a lot of nobles to help. In 2009, if it weren't for the help of Zheng Yutong and Liu Luanxiong, Evergrande estimated that it would have been a thunderstorm that year.
For Xu Jiayin, his life is basically over, and now the two remaining suspense are how Xu Jiayin will be judged in the end, and the second is whether the money that Xu Jiayin ran away will be recovered in the end?