Ex-Wife of Evergrande Founder Sues Son for $1.3 Billion Debt
In a shocking turn of events, Xu Jiayin, the founder of Chinese real estate giant Evergrande, has been served with debt claims totaling over HK$10 billion (approximately US$1.3 billion) by his ex-wife, Ding Yuemin. According to reports from Interface News, citing an article in the Hong Kong-based South China Morning Post, Ding filed a law suit against Xu's son, Xu Tenghe, at the High Court of Hong Kong on February 26, 2023. The lawsuit alleges that, according to a loan agreement signed between the parties on June 16, 2020, Xu Tenghe has failed to repay the borrowed funds by the agreed deadline.
27 February 2024
Ding is seeking legal recourse to recover the outstanding debt. Evergrande's struggles with debt have been widely reported, with the company's financial woes triggering concerns over potential contagion risks to the Chinese economy. The legal action taken by Ding against her former husband's son has sparked a wave of reactions on Weibo, China's Twitter-like platform. One user questions the situation, saying, "What's going on here?!" Another offers sarcastic commentary, stating, "The son has been caught, and the mother wants her money out as soon as possible.
Money matters, let them play it out." Other comments highlight the implications of the legal battle, with one user stating, "Xu Jiayin's turnaround chances are zero, while Jack Ma's are at 49%." A series of twinned lines or "couplets" critical of Xu and Evergrande have also been circulating on the platform:
People's currency, Xu Jiayin, illegally printed 24,500 billion. Lower: Unfinished buildings, Evergrande built, devastating the country with 160 million units. Motto: Disaster to the nation and the people, a crime punishable by death. ```
Another user comments on the situation with a pun, suggesting that the money has been moved from one hand to the other. Others are less amused, with one user asking, "What kind of tactic is this, borrow first and then sue? Even ordinary people would go broke from such a tactic." The lawsuit has also prompted comparisons to a television drama, with one user humorously suggesting that a screenwriter should come and gather story ideas from real-life events. Another user questions whether Xu Jiayin's family has been fully educated about the consequences of their actions, stating, "I guess this family has been taught a lesson." The legal battle involving Xu Jiayin's ex-wife and son highlights the complex financial entanglements within the business magnate's family and the potential fallout from Evergrande's debt crisis. As concerns linger over the spillover effects of Evergrande's financial troubles to China's broader economy, the lawsuit serves as a stark reminder of the human costs associated with the firm's struggles. In response to the lawsuit, Evergrande has yet to issue a public statement. As the case unfolds, the world will be watching closely to see how this saga continues to unfold.
