Edited by Wenqu Xing
Wenqu Xing
Shopping malls are like battlefields, and those who are capable cannot win strongly, this is a truth written on Evergrande Group.
This once unrivaled and powerful corporate giant has now become synonymous with "mud can't support the wall", and its head Xu Jiayin will not escape the fate of legal sanctions.
Evergrande Group was founded in 1996, and in just 25 years, relying on Xu Jiayin's business talent and iron-fisted decision-making, it has become a predator in the real estate industry in one fell swoop.
Evergrande is like a hungry wolf, devouring all walks of life, eager to include the entire business map in its own territory. While the outside world was stunned, the internal undercurrent was already turbulent and full of dangers.
The wolf eventually fell for his own greed and arrogance. As of June 30, 2021, Evergrande Group had a debt of 2.78 trillion yuan, a figure that was exposed like a heavy punch to the face of the entire capital market. Investors exclaimed, "This is too exaggerated!" Is this still a human thing?"
Compared with the appearance of Evergrande Group, the dark side behind it is even more chilling.
As an auditor of Evergrande for many years, the internationally renowned PricewaterhouseCoopers accounting firm has also become Evergrande's "protective umbrella".
They are supposed to strictly enforce auditing standards to ensure the truth and transparency of Evergrande's finances, but instead they cover up Evergrande's violations of laws and regulations. This can completely anger all sectors of society, and the lofty concept of "fair auditing" has suddenly depreciated to the point of "turning a blind eye".
If you want to talk about the unlucky eggs of Evergrande Group, I am afraid that Xu Jiayin, the head of the company, is the first. I, a tycoon who used to dominate the business world, can now not escape the punishment of the law.
In September 2023, he was taken compulsory measures on suspicion of serious violations, and in March 2024, he was banned from the securities market for life by the Securities Regulatory Commission.
The big guy once became an "old man", and this gap was enough to make everyone stunned.
Not to mention, there is a "big boss" behind Xu Jiayin's bad luck.
It turned out that Evergrande's financial fraud case was hiding an even more confusing conspiracy behind it! It is no wonder that this case has aroused strong concern and reflection from all walks of life.
This Evergrande "tragedy" is not only an internal problem of a company, it is more like a bombshell that shook the entire capital market. Countless investors have lost their money, and there is a crisis of confidence in the market.
This incident was like a boulder thrown into a calm lake, stirring up a thousand waves and causing an uproar.
So, how many aftermaths will this storm make?
Where exactly is corporate social responsibility?
How can the credibility of the auditing profession be rebuilt? And how can trust in the market be repaired?
These are all questions that deserve our deep thought.
Perhaps, in the face of the tragic lesson of this "Evergrande catastrophe", everyone should learn from the pain and seriously reflect on their own practices.
Only when the regulatory authorities continue to make efforts, improve relevant laws and regulations, take the initiative to take responsibility, audit institutions fulfill their duties, and investors are vigilant, can our capital market truly regain a healthy and stable development trend.
I believe that after this catastrophe, our market will usher in a new era of fairer and more transparent development!
Related Reports:
1. Beijing News Report: "Evergrande's Debt is as High as 2.78 Trillion Yuan, Financial Fraud Behind It Hides Serious Risks"
2. Yicai Report: "Evergrande Founder Xu Jiayin is banned from the securities market for life, and the supervision strikes hard"
3. Caixin report: "Evergrande incident triggers a crisis of confidence in the capital market, and corporate expansion must balance risks"
4. China Securities Journal Report: "Evergrande Auditor PricewaterhouseCoopers Questioned Damages the Credibility of the Industry and Needs to Be Repaired Urgently"
5. 21st Century Business Herald Report: "Supervision and Perfect Regulations, Enterprise Integrity Management, Capital Market Trust Needs to Be Jointly Maintained"