Xu Jiayin, Once the Richest Man in China, Has Now Become a Prisoner, Sparking a Major Uproar on the Internet

Xu Jiayin previously referred to himself as 'one of the Party's people,' diligently working to help the Communist Party profit, but he has now fallen to the status of a prisoner, becoming a sacrificial offering for the Party. (People News/AI-generated image)

[People News] On August 20, Evergrande founder Xu Jiayin was sentenced to life imprisonment, and all his assets were confiscated, creating a sensation online. Many Chinese netizens expressed that this was 'a great relief,' yet they remain anxious about the current situation. The general public understands that arresting one Xu Jiayin does not resolve the massive crisis that has plagued China's real estate sector for six years. While the life sentence provides some accountability to public opinion, the vast number of unfinished buildings left by Evergrande and the chaos in the real estate market continue to weigh heavily on ordinary citizens.

Chinese netizens comment: GDP is 'below zero or even negative.'

At present, millions of unfinished buildings across China remain vacant, awaiting further action; even in first-tier cities like Beijing and Shanghai, there are no signs of a rebound in housing prices, which continue to decline. Government revenues from land sales have plummeted, and new construction areas have contracted significantly. In some smaller cities, second-hand housing prices have dropped by nearly a quarter compared to 2020! As people witness their assets continuously shrinking, many are taking precautions and are hesitant to spend freely.

According to reports from state media, China's GDP growth rate has dropped to 4.3% in the second quarter of this year, reaching a new low not seen in over three years. However, many Chinese netizens openly express that their daily experiences feel like 'below zero or even negative.' From layoffs and salary cuts to the challenges of job hunting, people are unable to perceive who truly benefits from this 4.3% growth.

If basic living expenses cannot be sustained, who has the money to buy a house?

The life sentence handed down to Xu Jiayin does not indicate that China's real estate crisis is easing; many experts candidly acknowledge that the situation is indeed very challenging.

With Evergrande facing liquidation and Country Garden defaulting and halting land purchases, even Vanke, backed by state-owned enterprises, is busy extending debt repayments. Major players in the industry are collapsing one after another. A report by Reuters on the 24th highlighted that there are currently no signs of the housing market crisis coming to an end.

Experts from real estate consulting firms analyze that there are now so many houses in China that they cannot all be occupied, with over one-third of individuals treating their second homes as investments. The authorities are now attempting to redirect funds and resources towards high-tech industries such as robotics and semiconductors, but these new sectors are still too small to compensate for the economic downturn caused by the real estate collapse. Experts even predict that even if no new houses are constructed now, it will take at least a year and a half to absorb the existing inventory; housing prices may need to decrease by another 40% to achieve balance, and the entire adjustment period could extend up to ten years!

In an interview with The Dajiyuan, 38-year-old homeowner Jason Wang openly shared that the property he bought in Shandong Province in 2019 has depreciated by about 25% since his purchase. 'This kind of pain is unbearable,' he lamented. 'I can barely maintain basic living standards; who still has money to buy a house?' 

However, behind the sentiment of 'great relief' lies a deeper anxiety. 

Xu Jiayin, who once held the title of the richest man, has now become a prisoner, causing a stir on Chinese social media, where 'great relief' has emerged as the dominant sentiment. Many have come across court-released photos of Xu Jiayin, showing him with white hair and a worn-out appearance, leading to trending topics like 'Xu Jiayin turned white overnight' and 'wealth must come at a price.' 

Since Xu Jiayin's rise to wealth, there has been rampant speculation about which forces he serves as a puppet for. I believe he is likely not merely a pawn of a single faction, as he maintained close relationships and shared interests with numerous high-ranking party officials and leaders of state-owned enterprises during his peak. This has led public opinion to characterize Evergrande as a 'banquet' or 'soup' where many officials partook in the feast of China's real estate boom. 

Despite being aware that Evergrande has left millions of homes unfinished, Xu Jiayin continued his actions that have harmed countless ordinary citizens. It is not an exaggeration to say that he has worked for the Communist Party, exploiting the common people and draining them to the bone. 

Xu Jiayin has often declared, 'I am a person of the Party.' He believed that this allegiance would protect him when the public turned against him. Has he not heard the famous saying: 'Trust the Communist Party, and you will run straight into the crematorium'?

Once a towering figure in the business world, billionaire Xu Jiayin has now been reduced to a prisoner. The privileges and accolades that once surrounded him have completely disappeared. The plaque reading 'Jiayin Primary School,' which he donated in his hometown, has been taken down, and the symbols of his past honors have been stripped away, leaving only the school building itself.

Many netizens express their dismay, saying, 'We watched him rise to great heights, and now we see his downfall,' and they lament, 'He faked billions and only received a life sentence; that’s truly too lenient for him!'

'How much money can be recovered?'

Xu Jiayin's previous maneuvers, including a 'technical divorce' and setting up trusts for his sons to transfer assets overseas, sparked public outrage. Consequently, he was sentenced to five to seven years in prison, and his two sons, Xu Zhijian and Xu Tenghe, were also sentenced. Many netizens expressed a sense of 'vindication,' noting that his 'risk-avoidance firewall' has finally collapsed.

For the victims, owners of unfinished buildings, and investors in Evergrande's wealth management products, the question of whether he is sentenced is merely a nominal punishment. What concerns everyone most is not how long he will be imprisoned, but whether 'the confiscated and recovered assets can be prioritized for debt repayment and to finish constructing the houses?' 'How much money can actually be recovered?' 'Can the unfinished buildings be completed for us?' 'Will the unfinished buildings guarantee delivery?'

While officials state that refunds will take precedence over fines, there remains uncertainty about how much of the overseas assets can be retrieved.

'Have the people behind him been apprehended?'

Many rational netizens and financial bloggers have raised the question: 'Is it sufficient to only hold Xu Jiayin accountable?' The financial fraud amounting to hundreds of billions at Evergrande and its rampant high leverage have persisted for many years, making it clear that this cannot be merely a 'one-man show' by Xu Jiayin. Netizens are questioning the roles played by auditing firms (such as PwC/PricewaterhouseCoopers), local governments, financial regulatory bodies, and the bank executives who provided him with substantial loans at that time.

Numerous netizens are asking: 'Have the 'protective umbrellas' and the 'people behind' been apprehended?' There is a strong public demand that it should not be just Xu Jiayin and a few dozen executives who 'take the fall'; the institutional protective umbrellas that have consistently facilitated this must also be completely dismantled.

In the end, while Xu Jiayin's sentencing offers a form of accountability to society and provides some emotional satisfaction, for the countless ordinary families who have suffered, the harsh realities stemming from Evergrande's real estate fraud are unlikely to be resolved in the near future.

(First published by People News)
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