The story of EVERGRANDE is far from over, as the former "richest man" finds himself behind bars and the former "highest-paid corporate titan" sees his assets frozen. With the release of a 14,000-word court judgment, more astonishing details have come to light.
The judgment refers to Hui Ka Yan's close confidant and former president of EVERGRANDE, Xia Haijun. The Hong Kong court issued a latest ruling, dismissing his application for leave to appeal and upholding the previous worldwide Mareva injunction. A Mareva injunction is designed to prohibit the defendant from disposing of assets globally, preventing evasion of judgment enforcement.
The Mareva injunction targeting Xia Haijun highlights two critical points: 1) restricting Xia from transferring any assets in Hong Kong, valued at up to 60 billion Hong Kong dollars, out of the jurisdiction; 2) prohibiting the disposal or dealing with the sale proceeds from a luxury property at The Peak in Hong Kong.
After reviewing the full 14,000-word judgment and its details, one thought emerges clearly: while the EVERGRANDE empire has crumbled, those involved should not be allowed to walk away with the wealth. As the judgment becomes public, further specifics are being revealed.
Firstly, the court documents state that during his 15-year tenure, Xia Haijun received total remuneration exceeding 1.8 billion! To put this into perspective, that averages out to an annual salary of 120 million! An examination of EVERGRANDE's financial reports shows Xia's salary details: he achieved an annual salary in the tens of millions as early as 2009, and from 2015 onwards, his annual compensation consistently exceeded 100 million.
Even in the year EVERGRANDE defaulted (2021), Xia Haijun's annual salary remained as high as 200 million! Furthermore, out of this 202 million salary, 150 million was actual take-home pay (including salary, pension, and director's fees). This is simply astonishing. However, this amount pales in comparison to the 60 billion in assets, suggesting a high likelihood of assets being held under others' names.
Secondly, EVERGRANDE's liquidators believe that financial statement fraud was particularly evident from 2017 to 2020. Xia Haijun was responsible for EVERGRANDE's financing work from 2017 to 2021 and approved the financial reports and dividend distributions for those years. Yet, Xia and his lawyers argued that he was not directly involved in preparing the financial statements and claimed that, as a director, he bore no obligation to ensure their accuracy. Is this an attempt to shift blame onto subordinates? The court firmly rejected this, explicitly stating Xia's argument was erroneous! Evading responsibility? Not a chance.
While Hui Ka Yan's fate seems sealed, Xia Haijun continues to struggle. According to the latest Hong Kong court ruling, the injunction has been extended, and Xia's application to have it discharged was rejected. In other words, any attempt by Xia to transfer assets is effectively blocked. When EVERGRANDE was ordered into liquidation by the court, Hui Ka Yan, Xia Haijun, and other relevant individuals were required to disclose all assets they held. However, Xia has been consistently evasive.
As the judgment against EVERGRANDE becomes public, details of Xia Haijun's asset situation are gradually emerging. The amount of losses that can be recovered remains unknown, but Xia's asset status can be described as immensely wealthy. Xia Haijun holds Canadian citizenship; after Hui Ka Yan's arrest, EVERGRANDE's creditors discovered he primarily resides in California, USA, frequently traveling between Canada and California.
Xia Haijun began purchasing property in the United States as early as 2011, and assets held by his wife were largely transferred from him. Based on current information, Xia, through associated companies, bought a luxury home in the US in 2022 and later acquired property in Nevada in 2024. Assets under his wife's (or ex-wife's) name include: three properties and four vehicles (three Teslas and one Mercedes-Benz SUV) in Irvine, California, plus a trust fund, with a combined value reaching 24 million US dollars.
Two of these properties are luxury homes each over 300 square meters, and another is a large villa exceeding 800 square meters, equipped with a gym, spa pool, outdoor bar, and barbecue area. The above represents only a fraction of Xia Haijun's overseas assets, with many more properties believed to be hidden. It appears Xia very shrewdly converted the wealth earned from EVERGRANDE into overseas real estate, significantly complicating creditors' efforts to recover funds.
Last year, rumors even surfaced of Xia Haijun divorcing his wife, allegedly attempting to split and transfer assets through the divorce to shield them. Reflecting on the saga of EVERGRANDE and Xia Haijun, Xia joined the company in 2007 and resigned in 2022, spanning 15 years. Notably, just before EVERGRANDE's crisis erupted in 2021, Xia sold off bonds with a face value of $128 million (approximately 814 million RMB) and substantially reduced his holdings in EVERGRANDE Property Services and EVERGRANDE Auto shares. This timely exit suggests Xia likely anticipated the impending crisis.
He was later implicated in the scandal involving the disappearance of 13.4 billion in deposits from EVERGRANDE Property Services. Subsequently, before EVERGRANDE Group was delisted, it sought to recover 42 billion in dividends and salaries from seven defendants, including Xia Haijun and Hui Ka Yan and his wife. The outcome suggests that while Xia Haijun profited handsomely from his time at EVERGRANDE, amassing great wealth, he cannot escape legal consequences.
The arrest of Hui Ka Yan and the delisting of EVERGRANDE might only represent the middle act. The true finale will be the full accountability for EVERGRANDE's debts and the recovery of losses. What are your thoughts on this?
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