The property market in China isn’t doing too well at the moment, with the market being pretty overdeveloped. The company at the forefront of these issues is Evergrande. Once a real estate giant that built its company on debt, Evergrande is now swimming in about US$300 billion in loans.
The founder of the company, Xu Jiayin (or Hui Ka Yan), used to be quite chummy with the Chinese government, being a part of advisory bodies and committees. In July of last year, Xu went to a party celebrating the CCP’s 100th birthday, making investors happy because they took it as a sign that the CCP still had the tycoon’s back. Between July 2021 and now, though, Evergrande has defaulted on several debt payments and gone into debt restructuring.
And now, according to some sources, he hasn’t been invited to a key political meeting this week. Evergrande hasn’t commented on this matter.
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