China: the boss of the real estate giant Evergrande placed under house arrest

The noose is tightening around Evergrande. After the arrest of executives of the Chinese developer in mid-September, we learn this Wednesday, September 27, 2023 by the Bloomberg agency, that the boss of the bankrupt real estate giant, is under house arrest.

An Evergrande sign is visible near residential buildings at an Evergrande residential complex in Beijing, China, September 27, 2023. © Florence Lo / Reuters

By: RFI Follow

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With our correspondent in Beijing, Stéphane Lagarde

China's richest former man, a member of the Chinese Communist Party and a former delegate of the Chinese People's Consultative Conference, is no longer free to move. Xu Jiayin had a fortune of nearly 43 billion euros in 2017. He has nothing left today, or almost nothing. A vertiginous fall in the image of that of the group which has led to a crisis never before seen on the Chinese real estate market.

Aged 64, Xu Jiayin, also known as Hui Ka Yan in Cantonese, was arrested earlier this month, according to Bloomberg sources. According to the Code of Criminal Procedure in China, house arrest can last six months, recalls the Cantonese channel TVB on Wednesday, September 27.

A colossal debt of 307 billion euros

Identity card and passport confiscated, the former billionaire can not even take the train. This inquiry was followed by others. In mid-September, a police raid took place on Evergrande's financial branch in Shenzhen. Several dozen employees emerged handcuffed. Two former managers of the real estate giant, asphyxiated by a colossal debt of 307 billion euros, were also questioned by investigators, according to the business newspaper Caixin. A hearing of the group's creditors is scheduled for the end of next month, in court in Hong Kong.

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