Written by: Ermat

Image Source: news.mydrivers.com

In order to maintain the group’s liquidity,  Xu Jianin, China Evergrande Board Chairman, has raised funds by selling personal assets or pledging equity, and has injected over $7 billion in cash into the group to maintain the basic operations of the huge Evergrande empire, the Observer reported on Nov. 16.

Evergrande, which is in crisis, declared as early as in mid-August that it wanted to sell its assets such as Evergrande Property and Evergrande Auto to quickly recoup funds. During the period, there was also news that Evergrande would sell assets such as the Hong Kong headquarters building. On October 20, Evergrande and Hershey announced simultaneously that the transaction of transferring Evergrande’s property stake to Hershey was terminated. The whole transaction was expected to be HK$20.04 billion. It is true that the Evergrande property was not sold, but the difficulties of Evergrande are real. If Evergrande fails to meet its obligations under the guarantee or other debts as they fall due and is unable to reach a renewal of the loan with its creditors, it will have a material adverse effect on the company’s business, prospects, financial condition and results of operations.

Recently, news about Xu Jiayin’s sale of personal assets has also been widely circulated in the market. Xu Jiayin is said to have pledged and sold his personal assets. The asset package that has been sold includes three villas in Hong Kong and mansions in Guangzhou and Shenzhen, as well as several private jets. And the money taken back is basically used to pay back interest, financial management and payroll, etc.

Xu Jiayin is not the only real estate company owner who is relying on himself, there is also Sun Hongbin, chairman of the board of directors of Sunac China. On November 14, Sunac China announced that Sun Hongbin will lend 2.9 billion yuan to the group for free out of his own pocket.