Evergrande's Crisis Reaches Party Central: How Many Senior Officials Did Xu Jiayin Expose?

Dark clouds hang over Tiananmen Square in Beijing. (Lintao Zhang/Getty Images)

[People News] From April 13 to 14, the Intermediate People's Court of Shenzhen City, Guangdong Province, held a public hearing on the case against Evergrande Group Co., Ltd. for illegal public deposit absorption, fundraising fraud, illegal loan issuance, fraudulent securities issuance, illegal disclosure of important information, and unit bribery. The case also involves Evergrande Real Estate Group Co., Ltd. in fraudulent securities issuance, as well as Xu Jiayin's illegal public deposit absorption, fundraising fraud, illegal loan issuance, illegal use of funds, fraudulent securities issuance, illegal disclosure of important information, embezzlement, and unit bribery.

Reports indicate that Xu Jiayin, the founder of Evergrande, former chairman of the board, and party committee secretary of Evergrande Real Estate Group, as well as a standing committee member of the 13th National Committee of the Chinese People's Political Consultative Conference, admitted his guilt and expressed remorse in court. The court is expected to announce its verdict at a later date.

According to earlier media reports, the amounts involved in the Evergrande fraud case are staggering. For instance, the illegal fundraising by Evergrande Wealth exceeds 9 billion yuan; the illegal misappropriation of funds is at least 13.4 billion yuan, and the illegal dividends amount to 6 billion US dollars (approximately 42.7 billion yuan). Xu Jiayin's personal fund overseas is reported to be 2.3 billion US dollars. The final amounts will be confirmed by the court.

However, what intrigues people is not just these figures, but the deep secrets concealed behind the Evergrande crisis. What the Communist Party dares not disclose is how intricate the corruption network within Evergrande is. How many high-ranking officials has Xu Jiayin implicated? Who are the national officials linked to the Evergrande case?

Xu Jiayin's business support network is believed to consist of a large group of individuals, including high-ranking officials from various factions within the Chinese Communist Party (CCP), such as Jiang faction members Zeng Qinghong, the Zeng Qinghuai brothers, and the Jia Qinglin family. At that time, Xu Jiayin, who was a member of the National Committee of the Chinese People's Political Consultative Conference, even attended the celebration at Tiananmen Square on the CCP's anniversary in 2021, which required the approval of Wang Huning, then a member of the Politburo Standing Committee responsible for overseeing the entire party celebration.

In 2021, Evergrande Group faced a debt crisis, and in September 2023, Xu Jiayin was taken by the police for "residential surveillance at a designated location." A report from the Supreme People's Procuratorate in March 2025 indicated that 42 individuals associated with Evergrande had been prosecuted, but Xu Jiayin's case was treated separately. Around this time, several high-ranking officials, including former Guizhou Provincial Party Secretary Sun Zhigang, former Everbright Group Chairman Li Xiaopeng, former Bank of China President Liu Liange, former Liaoning Provincial Governor Tang Yijun, and former Hubei Provincial Party Secretary Jiang Chaoliang, were dismissed and reported by Chinese media to have close ties with Xu Jiayin.

Recently, Ma Xingrui, a member of the CCP Politburo, was officially announced to have been dismissed. Independent commentator Du Zheng cited leaks from Guangzhou's political circles, stating that after Xu Jiayin lost his freedom in September 2023, he provided authorities with a lengthy list of high-ranking officials, including Ma Xingrui.

Xu Jiayin once stated that everything Evergrande has is given by the Party. So now, how is it that Evergrande is revealing one high-ranking official after another who has benefited him from the Party?

Xu Jiayin is linked to the Zeng Qinghong family, with hundreds of billions in wealth being transferred to whom?

Xu Jiayin, whose net worth once reached 42 billion USD, is said to be embroiled in internal power struggles among CCP elites behind his downfall. Former CCP officials have disclosed the inside story of how Xu Jiayin ascended to the Zeng Qinghong family.

Xu Jiayin's arrest is closely linked to the over 600 billion yuan that has seemingly vanished from Evergrande's financial statements. There is widespread speculation regarding his potential asset transfers.

A user on the overseas social media platform X, under the account 'Asian Finance', previously claimed that Evergrande's financial report revealed that since the introduction of the three red lines in 2018, Xu Jiayin has aggressively transferred approximately 100 billion yuan in assets overseas through dividends and US dollar bonds.

Wang Youqun, a former official of the Central Commission for Discipline Inspection, has stated that Xu Jiayin initially connected with the Zeng Qinghong family, which facilitated Evergrande's rapid expansion into one of the Fortune Global 500 companies within just over two decades. Xu Jiayin became China's richest man in 2017, and public sentiment generally views him as a proxy for the Zeng family.

The article highlights that Xu Jiayin shares a close personal relationship with Dai Yongge, the CEO of Renhe Group. Dai Yongge is known to be a financial backer for the Zeng Qinghong family and previously assisted Zeng Qinghong's son, Zeng Wei, in purchasing property in Australia, spending around 250 million yuan on a luxury residence. He also transferred 40% of Renhe Group's shares to Zeng Wei's wife, Jiang Mei, at no cost.

The Sydney Morning Herald reported that in 2015, Xu Jiayin lent his luxury home in Australia to Zeng Wei for a party.

Xu Jiayin was formerly a director of the Hong Kong Cultural Industry Union, an organisation often referred to as the 'Hong Kong Tycoons Club.' Zeng Qinghong's brother, Zeng Qinghuai, previously held the position of special inspector for the Ministry of Culture of the Communist Party of China in Hong Kong and served as the honorary chairman for life of the Hong Kong Chinese Cultural City, where he held considerable sway in the local cultural sector.

The article indicates that Xu Jiayin leveraged the platform of the Hong Kong Cultural Industry Union to forge a connection with Zeng Qinghuai. Reports from overseas media reveal that in 2009, when Zeng Qinghuai's daughter, Zeng Baobao, took her Huayang Nian Group public in Hong Kong, Xu Jiayin, Zheng Yutong, and Liu Luanxiong all purchased shares in the company.

Yuan Hongbing, a legal scholar living in Australia, has remarked that Xu Jiayin acts as the 'white glove' for the Zeng Qinghong family, stating, 'This is common knowledge in Chinese political circles. The individuals associated with Xu Jiayin are Zeng Qinghong's brother Zeng Qinghuai and Zeng Qinghong's son Zeng Wei; Zeng Qinghong himself cannot make an appearance. Zeng Qinghuai represents the Zeng Qinghong family.'

The narrative surrounding Xu Jiayin and Sun Zhigang is noteworthy.

Sun Zhigang, the former secretary of Guizhou Province, was sentenced to death with a two-year reprieve for bribery by the Communist Party of China in October 2024. Following Sun Zhigang's downfall, domestic media have suggested that after Xu Jiayin's own fall from grace, he sought to recover some of the bribes to 'make amends' by betraying Sun Zhigang. The extent of the bribes that Xu Jiayin funnelled to Sun Zhigang is likely something even he would struggle to quantify.

Their destinies share many similarities. Firstly, both hail from the same hometown and are four years apart in age, having been born into ordinary families in Henan, lacking significant background or influence to aid their development. Their life stories are quite alike. Secondly, Xu Jiayin and Sun Zhigang share a teacher-student relationship. Xu Jiayin enrolled in the Metallurgy Department of Wuhan Iron and Steel Institute after the college entrance examination was reinstated in 1978. At that time, Sun Zhigang, who was four years his senior, was a young teacher in that department. They are not only alumni but also have a teacher-student connection.

Subsequently, Xu Jiayin ventured into business while Sun Zhigang pursued a political career. As Xu Jiayin amassed wealth and expanded his business, he actively sought connections within the Jiang faction. By the time Xu Jiayin became the richest man in China, Sun Zhigang had ascended to the position of a member of the Standing Committee of the Anhui Provincial Party Committee and Executive Vice Governor of Anhui Province. In 2017, Sun was appointed Secretary of the Guizhou Provincial Committee, coinciding with Xu Jiayin's Evergrande stock price reaching an all-time high. The trajectories of their official careers and financial fortunes appear to rise in tandem.

Xu Jiayin and Sun Zhigang have finally become intertwined. During the 2017 Guizhou Fair, Xu Jiayin met with Sun Zhigang, the Secretary of the Guizhou Provincial Committee, along with his entourage. The two engaged in light-hearted conversation about development. They took a group photo, with 'Chairman Xu' positioned prominently in the centre. In Evergrande's promotional materials, the news headline surprisingly used the diplomatic term 'meeting,' suggesting a high-level encounter. In retrospect, this clearly illustrates Xu Jiayin's initial sense of pride and superiority. Notably, Sun had previously referred to him as 'teacher,' and in the political sphere, Sun was treated as 'big brother.' Yet, Xu Jiayin seemed to regard him with little respect. This indicates that at that time, Xu likely had someone more powerful than Sun supporting him. Who was that? It was Zeng Qinghong and his family. Xu Jiayin was once a proxy for the Zeng family, and much of his wealth was 'acquired from Sun.'

According to reports from mainland media, when Xu Jiayin personally visited Guiyang to meet with Sun Zhigang, who was overseeing Guizhou, they finalised two key agreements: Evergrande Group would significantly increase its investments in Guizhou in areas such as industrial poverty alleviation, culture, and tourism. Sun, smiling, entertained the financial mogul with fine wine and gourmet food.

At the poverty alleviation conference in Guizhou, Xu Jiayin passionately stated that everything Evergrande has is a gift from the Party, and we should give back. So how did Xu Jiayin 'give back' to Guizhou? From this return, we can discern how many benefits Sun provided to Xu.

In a report from NetEase, an article titled '30 Billion Bad Debts, Guizhou Bank Was Horribly Trapped by Evergrande' noted that the debt socialisation caused by Evergrande is difficult to resolve in the short term, and banks are also victims of Evergrande's issues. For instance, Guizhou Bank.

Guizhou Bank's 2023 financial report indicates that its total loans related to real estate amount to 7.5 billion yuan, with approximately 3 billion yuan classified as bad debts, resulting in a bad debt ratio of 40.39%. In its annual report, Guizhou Bank explicitly stated that it has included the operations of certain real estate companies in its non-performing asset management.

The 'certain real estate companies' mentioned in Guizhou Bank's non-performing loans likely refer to Evergrande. In 2022, Guizhou Bank had already taken several subsidiaries of Evergrande to court, with the total amount involved being around 850 million yuan; however, this does not cover all loans associated with Evergrande...

The article further reveals that local support for Evergrande has been significant, including financing for its projects. Many of Evergrande's projects in Guizhou's prefecture-level cities are ones that other banks are hesitant to finance, and Guizhou Bank's loans to Evergrande surged during that period. Unfortunately, after Evergrande defaulted on its debts, many of these loans also turned into non-performing assets...

So, what benefits did Xu Jiayin provide to Sun Zhigang? At that time, Xu Jiayin claimed he would invest 3 billion yuan without charge to help a region in Guizhou escape poverty. Sun was so enthusiastic that he shouted in agreement, praising, 'Evergrande has set a shining example, writing a significant chapter in China's poverty alleviation history.'

However, this is not a mutual benefit between the two; it is simply a part that Xu Jiayin can clearly recall.

It is unfortunate that two individuals with similar destinies find themselves in a situation where, as the saying goes, 'fellow townsmen, a knife in the back.' In times of prosperity, they meet with tears in their eyes, but when challenges arise, they betray each other to safeguard their own interests. This may reflect the typical dynamics within the interest-driven landscape of the Chinese Communist Party (CCP). Xu Jiayin, who gained wealth and influence during the Jiang Zemin era and has substantial connections to the Jiang family, is adept at navigating the intricacies of the CCP's political environment.

The Rivalry Between Xu Jiayin and Tang Yijun

Tang Yijun, the former governor of Liaoning Province, former Minister of Justice of the CCP, and an alternate member of the 19th Central Committee, was accused by the Xiamen Intermediate People's Court in Fujian Province on February 2, 2026, of illegally accepting property worth over 137 million yuan. He was sentenced to life imprisonment for bribery, with all his personal assets confiscated.

During Tang Yijun's administration in Liaoning, he had a close relationship with Xu Jiayin and Evergrande. During this time, Evergrande made substantial investments in real estate projects in Liaoning, acquired controlling stakes in Shengjing Bank, which is the ninth largest city commercial bank in the country and the largest in Northeast China, and placed several executives in key positions to control Shengjing Bank, while also heavily investing in real estate projects in the region. Some believe that these achievements were facilitated by Tang Yijun's support. However, Tang Yijun neglected to regulate Shengjing Bank and its controlling shareholder, the 'Evergrande system,' allowing Evergrande to operate freely within Shengjing Bank, which ultimately led to significant bad debts.

In 2021, regulatory authorities confirmed that Shengjing Bank had provided over 100 billion yuan (RMB) in financial support to Evergrande Group. In the middle of that year, following the outbreak of the Evergrande debt crisis, state-owned enterprises in Shenyang were compelled to take over and restructure Shengjing Bank. Liaoning Asset Management Co., Ltd. (hereinafter referred to as Liaoning Assets) acquired 183.7 billion yuan worth of risky assets from Shengjing Bank. This amount includes 154.4 billion yuan in principal bad debts and 29.3 billion yuan in interest receivable bad debts. The majority of these non-performing loans were directly funnelled to Evergrande Group.

During Tang Yijun's administration, Liaoning also addressed issues with another high-risk bank, Jinzhou Bank. By the end of 2018, Jinzhou Bank had total assets exceeding 800 billion yuan, with on-balance and off-balance sheet bad debts reaching as high as 300 billion yuan.

Industry insiders speculate that Shengjing Bank, Liaoning Asset Management Co., Ltd., and Jinzhou Bank were undoubtedly very angry and accused Tang of negligence and dereliction of duty, and they may have submitted evidence regarding issues they had with him. When problems were uncovered at the two banks, Xu Jiayin may have disclosed details about his dealings with Tang Yijun and issues related to the transfer of benefits. The details of Tang's power-money transactions incited public outrage.

Xu Jiayin implicated Ma Xingrui.

Xu Jiayin also revealed economic issues concerning Ma Xingrui. Independent commentator Xiang Yang posted on the X platform on April 5, stating that a 'workshop director' had sent numerous officials at the ministerial level and members of the Politburo to Qincheng, even leading to their demise.

The term 'workshop director' here refers to Xu Jiayin, who served as the heat treatment workshop director at the Wuyang Steel Plant in Pingdingshan, Henan, before his rise to prominence. Among the numerous officials at the ministerial level and members of the Political Bureau, one notable figure is Ma Xingrui, who was recently announced by the Chinese Communist Party to be under investigation. Others include former chairman of the Everbright Group Li Xiaopeng, former president of the Bank of China Liu Liange, and former secretary of the Hubei Provincial Committee Jiang Chaoliang, among others.

Xiang Yang noted that Ren Xuefeng, who was transferred from Tianjin to become the secretary of the Guangzhou Municipal Committee in August 2014, intentionally distanced himself from Xu Jiayin, aware that this was a risky situation. Consequently, Xu Jiayin turned to Ma Xingrui, who was then the deputy secretary of the Guangdong Provincial Committee and the secretary of the Shenzhen Municipal Committee.

Independent commentator Du Zheng disclosed insider information on July 27, 2025, in the Taiwanese media outlet 'Shangbao', revealing that after Xu Jiayin lost his freedom in September 2023, he implicated Ma Xingrui. On November 4, 2015, Ma Xingrui, then deputy secretary of the Guangdong Provincial Committee and secretary of the Shenzhen Municipal Committee, met with Xu Jiayin, chairman of the Evergrande Board.

Reports indicate that with Ma Xingrui's support, Evergrande quietly relocated its headquarters from Guangzhou to Shenzhen over the following year. Xu Jiayin provided significant benefits to his 'benefactor' Ma Xingrui. After Ma Xingrui was promoted to governor of Guangdong Province, Evergrande expanded its collaboration with the Guangzhou municipal government on June 11, 2019, with Ma Xingrui bringing along Guangzhou Municipal Committee Secretary Zhang Shuofu and Vice Governor Zhang Hu to support Xu Jiayin. According to the agreement, Evergrande is set to vigorously develop the new energy vehicle industry in Guangzhou.

(People News first published) △