2023-09-27 09:17:37
According to Bloomberg, billionaire Xu Jiayin was taken away by the authorities in early September. The giant Evergrande has been in great financial difficulty for months.
The boss of Evergrande, the Chinese developer with astronomical debtis under house arrest, Bloomberg agency said on Wednesday, at a time when the group is facing increased pressure from its creditors.
Evergrande, whose descent into hell regularly makes the headlines, had a colossal slate estimated at the end of June at $328 billion (307 billion euros).
Two executives in detention
The billionaire Xu Jiayin (also known by its Cantonese name Hui Ka Yan) was taken away earlier this month by the authorities, Bloomberg writes, citing anonymous sources. Evergrande did not immediately react.
Access to credit has been considerably reduced for Chinese real estate groups, some of which are now struggling to complete projects.
In mid-September, the group announced the arrest of employees in one of its subsidiaries. The press release did not specify their number or what they are accused of. According to Caixin, a renowned economic media, two former Evergrande executives were also placed in detention.
The real estate sector in China has experienced an increase in recent decades. meteoric growth, in a country where the purchase of a property even before its construction made it possible to finance other projects. But the groups’ debt has reached such levels that the authorities have decided toput an end to it from 2020.
Since then, access to credit has been considerably reduced for these groups, some of whom are now struggling to complete projects, fueling a crisis of confidence with potential buyers which drives down prices.
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