Xu Jiayin case, first trial opens!

On April 13-14, the first trial of Xu Jiayin's case took place, and he pleaded guilty and showed remorse in court.
The once-giant real estate empire has collapsed suddenly, and many people thought it was the 2 trillion yuan debt that crushed Evergrande,
But a famous Zhejiang University commentator directly stated: debt is just an appearance; the real deadly issues are three other things:
First, it's not that the debt is large, but that the creditors are too scattered and impatient.
Owing over one trillion yuan to suppliers, construction payments, and taxes—all are rigid demands for money.
When one bank sues to freeze assets, all banks follow suit and cut off loans, causing cash flow to break instantly.
Second, ignoring red lines and expanding recklessly, throwing money into water.
With three red lines looming, Evergrande insisted on making cars, football, and mineral water.
Just Evergrande Auto lost 110.8 billion yuan, purely burning cash to survive.
Third, experiencing defaults while issuing huge dividends.
Over 80 billion yuan in dividends over more than a decade, with Xu Jiayin and his wife taking nearly 60 billion yuan.
Using borrowed money to pay dividends to themselves—classic "Ponzi dividend."
The real trigger was a 132 million yuan freeze application by Guangfa Bank in 2021.
Once the news broke, both stocks and bonds plummeted, and a bank run erupted, causing a domino effect and collapse.
Therefore, 2 trillion yuan is the result, not the cause.
High debt doesn't necessarily lead to death; the real killers are debt structure + bank run chain reactions + reckless investments that sent Evergrande on its path.
Now, Xu Jiayin pleads guilty in court, marking the end of the former richest man,
And sounding an alarm for all enterprises:
Leverage may be fierce, but cash flow stability is better; expanding endlessly is not as good as long-term survival. #EvergrandeGroupEvergrandeRealEstateAndXuJiayinFirstTrial