At the peak of Xu Jiayin’s success, some predicted his business empire couldn’t last. A man who lived an extremely extravagant lifestyle often can’t maintain his success for long, and even among global billionaires, Xu Jiayin’s lavishness was exceptional.
The owner of Evergrande spent a staggering one million yuan annually on cigars alone, and even the mineral water he drank cost 2,700 yuan per bottle. Xu Jiayin indulged in his addictions to power, wealth, and pleasure within the Evergrande kingdom. But in the end, he tried to escape from the situation only to destroy himself.
In 2023, Evergrande Group released a financial report that shocked everyone — a loss of over 812 billion yuan in two years, and total debt soared to 24 trillion yuan! This empire, which once made Xu Jiayin China’s richest man, was overnight reduced to a disastrous mess full of holes.
What infuriated people even more was that while countless homeowners were waiting for their homes and suppliers were waiting for payments, Xu Jiayin was reportedly transferring assets secretly, even attempting to use US “bankruptcy protection” to shirk responsibility, leaving the debt behind in China while taking his money and running.
Who could have imagined that a man from the rural village of Taikang County in Henan, China, who once achieved the ultimate “grassroots rise,” would end up in this situation? In 1975, after finishing high school, Xu Jiayin worked in his hometown farming, driving tractors, and hauling manure. Determined to escape rural life, he studied tirelessly and eventually entered Wuhan Iron and Steel College.
After graduation, he worked at the Wuyang Steel Factory, where he went from assistant to department head and became a “famous” figure in the factory by producing documentaries. But he wasn’t content being a worker. Observing the bosses making money, he grew restless and later resigned after helping a partner company with “underhanded tactics,” then moved to Shenzhen to make his fortune.
In 1993, Xu Jiayin started at Zhongda Group, where he worked his way up from sales to office director and helped the company earn 200 million yuan. But when the boss refused to raise his salary, Xu Jiayin decided to go out on his own and founded Evergrande Real Estate in 1996.
The first project, “Jinbi Garden,” took advantage of the booming real estate market, quickly securing land at low prices and selling rapidly, making Evergrande a success. In the following years, Xu Jiayin expanded aggressively. In 2004, Evergrande entered the top 10 real estate companies in Guangzhou. By 2009, it was listed in Hong Kong, with a market value of 70.5 billion HKD, and Xu Jiayin became China’s richest man with a net worth of 42 billion yuan.
At that time, Xu Jiayin was truly at the peak of his career. Evergrande’s projects were everywhere, and he was surrounded by adoring followers wherever he went, gradually thinking of himself as the “king” of the Evergrande empire. The headquarters in Shenzhen was more luxurious than a palace, and he owned countless properties, including many luxury homes abroad, particularly in the United States. The kitchen even had golden cups and bowls.
As Ma Weidu once said, when meeting Xu Jiayin, he was asked to wait in the lobby while Xu finished his workout, and when he emerged, someone immediately assisted him with his coat. Xu even required someone to light his cigarette and another to knock off the ash. His lifestyle was a perfect example of “imperial conduct.”
Even more absurd was the fact that he kept a singing and dancing troupe at Evergrande headquarters, selecting only those with high looks and good dancing skills for performances at annual meetings. A 42-story rehearsal room was reserved only for top management. Some mocked this as a “modern harem,” but Xu didn’t care. The company’s funds seemed to be his personal property. To build relationships, he would buy cars that clients liked just to drive them for a while before selling them, demonstrating his unlimited spending.
However, the celebration eventually ended. With tighter real estate controls, Evergrande’s high-debt model collapsed. After the debt explosion in 2023, it became clear that Xu Jiayin had already prepared for this. He and his wife “faked” a divorce, transferring assets to her name, and secretly moved money abroad, hoping to use US bankruptcy laws to escape.
Huang Hongsheng, founder of Skyworth, angrily criticized him for being “an enemy to the people, deceiving the country and the public.” This was certainly not an exaggeration: how many people had emptied their savings to buy Evergrande’s pre-sold homes but still hadn’t received their properties? How many suppliers were waiting for payments, and how many employees had been laid off, with social insurance cut off, while Xu Jiayin’s family lived in luxury abroad?
In 2024, Xu Jiayin was fined 47 million yuan, and his luxury homes were seized to settle the debt. Once China’s richest man, he became the “deadbeat” that everyone despised. Some people called him a “gambler” for expanding with high leverage, enjoying the winnings but avoiding responsibility when he lost. Others called him a “fraud,” building his commercial empire with one lie after another and ultimately leaving a mess for society to clean up.
Looking at Xu Jiayin’s rise to wealth, it’s clear that he was inherently a “gambler.” From quitting his steel factory job to taking risks with the real estate business, to expanding wildly, he gambled time and again. But when he won, he didn’t know how to stop. Instead, he indulged in power, money, and pleasure, treating the company as his personal property.
He forgot that when a company grows, it is no longer just for one person; it is tied to the livelihood of countless families. His downfall was not due to bad luck, but rather a predictable outcome. An empire built on lies and greed was bound to collapse.
In an announcement by Evergrande on August 14, 2023, it was discovered that Xu Jiayin’s wife had become a third party in Evergrande, rather than being listed as Xu’s spouse. It turned out that Xu Jiayin had technically divorced his wife. The public information we saw was already from a long time ago, suggesting that Xu had either extraordinary intelligence or guidance from someone behind the scenes.
Additionally, before the company fell apart, Xu Jiayin had bought a 2.3 billion yuan trust fund for his youngest son, ensuring that his descendants would live comfortably for generations. Despite Evergrande’s decline and numerous unfinished projects, Xu Jiayin had set up his family for life, while ordinary people were left to deal with the consequences of his actions.
Evergrande is still dealing with its debts, and Xu Jiayin is paying for his actions. However, those ordinary people who were badly affected continue to struggle for their homes and payments. This story teaches us that no matter how wealthy one becomes, it’s important to never forget one’s roots; no matter how successful one is, maintaining integrity is crucial. Otherwise, the higher you climb, the harder you fall.
References:
- Evergrande Group Financial Reports (2023)
- Interviews with real estate experts
- Reports on Xu Jiayin’s actions
