Ma Yun, once China’s icon from teacher to billionaire via Alibaba, saw his empire crumble due to greed, mirroring Xu Jiayin’s Hengda collapse. Alibaba’s 2020 IPO halt after Ma’s Outer Bund speech criticizing banks exposed overleveraged Ant Group, with loans at 300:1 ratios. Hengda’s 2 trillion yuan debt led to bankruptcy, affecting suppliers and investors. In 2025, Ma focuses on AI and philanthropy, while Xu faces restrictions. Explore how greed shattered these myths and lessons for China’s business landscape.
Ma Yun: From Innovation to Overreach
Ma started as a teacher, founding Alibaba to revolutionize e-commerce, connecting SMEs and consumers. Its IPO made him Asia’s richest, with speeches influencing business discourse.
Ant Group’s expansion into credit, leveraging data for loans, attracted millions but hid risks. Ma’s 2020 speech criticized banks’ conservatism, advocating tech over collateral. Regulators halted Ant’s IPO, marking Ma’s downfall. Ant’s model shifted risks to banks, with high leverage threatening stability.
Greed drove Ma’s scale obsession, ignoring credit essentials like collateral. Post-restructuring, Ant shifted to tech services, losing control status.
Xu Jiayin: Hengda’s Debt-Fueled Collapse
Xu built Hengda into a real estate giant with 2 trillion yuan debt, leveraging 500:1 ratios. Charlie Munger criticized such models. 2021 defaults triggered supplier crises, with 134 billion yuan in frozen deposits partially recovered.
Xu’s greed ignored cycles, leading to bankruptcy. In 2025, Hengda delisted, scattering investors. Xu’s Hong Kong mansion demolished for violations.
Shared Greed: Lessons for China
Both ignored risks: Ma’s financial overreach, Xu’s debt binge. Regulators intervened for stability, restructuring Ant and clearing Hengda. This promotes steady development over speculation.
In 2025, Ma advocates AI for humanity, partnering like Ant with Guangming Food. Xu’s saga warns against leverage abuse.
Conclusion
Ma Yun and Xu Jiayin’s falls from greed highlight responsibility in success. China’s economy emphasizes sustainable growth, with regulation ensuring order. Their stories teach balance—innovation with caution shapes the future.
