[Asia Economy Reporter Park Byung-hee] There are claims that the Chinese government instructed Xu Jiayin, chairman of Evergrande Group, to contribute his personal funds to resolve Evergrande Group's debt issues.
According to Bloomberg News on the 26th (local time), an anonymous official claimed that when Evergrande Group failed to repay $83.5 million in dollar bond interest on September 23, the authorities ordered Chairman Xu to contribute his personal funds.
The official also said that local Chinese governments are continuously monitoring Evergrande Group's bank accounts. They are closely watching whether Evergrande is securing sufficient funds to continue repaying bond principal and interest while carrying out housing construction projects.
Evergrande Group avoided default by repaying $83.5 million in dollar bond interest last week. Although the repayment deadline was September 23, there was fortunately a one-month grace period, and the interest was repaid just before the grace period ended.
However, it is not known how Evergrande raised the funds. The possibility that Chairman Xu contributed his personal funds under the Chinese government's directive cannot be ruled out.
Negotiations for the sale of some Evergrande Group affiliates' shares have not yielded significant results, and with housing sales in China also sharply declining, it is difficult for Evergrande to secure funds at the group level.
One foreign media outlet also reported that Chairman Xu agreed to contribute his personal funds to support Evergrande's housing construction projects and bond principal and interest repayments.
Bloomberg estimated Chairman Xu's wealth at approximately $7.8 billion. It explained that although it once exceeded $40 billion in 2017, it has steadily decreased over the past few years. However, it added that the estimated wealth size is not precise.
Most of Chairman Xu's wealth is estimated to come from dividends received from Evergrande Group. The U.S. economic weekly Forbes estimated Chairman Xu's wealth at $11.5 billion last month, reporting that $8 billion of this was cash dividends received from Evergrande Group. Bloomberg also reported that over the past 10 years, including dividends, Chairman Xu has received about $8 billion in compensation from Evergrande Group.
Evergrande Group's debt exceeds $300 billion as of the end of June.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
![Clutching a Stolen Dior Bag, Saying "I Hate Being Poor but Real"... The Grotesque Con of a "Human Knockoff" [Slate]](https://cwcontent.asiae.co.kr/asiaresize/183/2026021902243444107_1771435474.jpg)
