In order to bail out Evergrande, Xu Jiayin did it again.

On November 26th, according to the latest equity news disclosed by the Hong Kong Stock Exchange, Xu Jiayin, chairman of Evergrande, and his actors sold a total of 1.2 billion China Evergrande Group shares at an average price of HK $2.23 per share, with a total sale amount of about HK $2.676 billion.

After the completion of the deal, Xu Jiayin's stake in China Evergrande Group fell from 76.96 per cent to 67.87 per cent, the second change in Xu Jiayin's shareholding in Evergrande this year.

People familiar with the matter told reporters that the HK $2.676 billion realized by Xu Jiayin will continue to be used to bail out the company.

In mid-November, Evergrande revealed that in the face of bank loan suspension and sales shutdown since the crisis, Xu Jiayin took out 7 billion yuan in cash from his family in order to "renew his life." it is used to pay 10% of the monthly wealth management products, the wages of headquarters employees and the repayment of interest on public bonds at home and abroad.

In terms of share price, as of November 26, China Evergrande Group closed at HK $2.50 per share, down 10.39%, with a total market capitalization of HK $33.1 billion.

Xu Jiayin reduced his holdings for the second time this year

According to the latest disclosure by the Hong Kong Stock Exchange, China Evergrande Group Group shareholders Xu Jiayin, his company Xin Xin (BVI) Limited and Xu Jiayin's wife Ding Yumei sold a total of 1.2 billion shares of China Evergrande Group Group shares at an average price of HK $2.23 per share, for a total transaction price of about HK $2.676 billion.

After the share reduction was completed, Xu Jiayin's stake in China Evergrande Group fell from 76.96 per cent to 67.87 per cent. People familiar with the matter told reporters that the reduction of HK $2.676 billion held by Xu Jiayin will be used to bail out the company.

In fact, since China Evergrande Group's listing in 2009, it is rare for Xu Jiayin to reduce his holdings in the ups and downs of Evergrande's share price, but Xu Jiayin's stake in China Evergrande Group has also changed at least twice this year after Evergrande suffered a liquidity crisis in 2021.

In addition to the reduction, the HKEx disclosed that on October 8 this year, the number of China Evergrande Group shares held by Xu Jiayin changed 500 million shares, but the change price per share was not disclosed. the reason for the disclosure is that "shares have been provided as a guarantee to people other than eligible lenders." Xu Jiayin's shareholding has been reduced to 76.69%, while China Evergrande Group's 2021 semi-annual report shows that Xu Jiayin holds 10162119735 China Evergrande Group shares. The shareholding ratio is 76.71%.

However, when it comes to the reduction of China Evergrande Group's shares, we have to mention Xu Jiayin's "die-hard fans" of Hong Kong tycoons Luanxiong Lau and Chen Kaiyun.

On November 23rd, the Chinese real estate company controlled by Mr. and Mrs. Liu Luanxiong announced that it would sell up to 751 million shares of China Evergrande Group in the market or through bulk transactions at one time or in a series, that is, the complete clearance of Evergrande. The period is valid for one year from September 23, 2021 to September 22, 2022.

It is understood that Chinese property bought a total of 860 million shares of China Evergrande Group from 2017 to 2018, with a total cost of 13.596 billion Hong Kong dollars and an average cost of 15.8 Hong Kong dollars per share. Assuming that 860 million shares of China Evergrande are sold at 2.78 Hong Kong dollars per share, the total loss is expected to be 10.558 billion Hong Kong dollars.

Cash back to the guaranteed delivery building

At present, the current situation of Evergrande is facing a dilemma: on the one hand, it is facing the current situation of bank loan suspension and sales shutdown, on the other hand, Evergrande needs to complete the task of "protecting people's livelihood, protecting traffic buildings and maintaining stability" under liquidity pressure. As a result, Evergrande has had to continue to "sell" all the way this year to get liquidity support.

On November 19th, Evergrande Group's official Wechat revealed that the "return to work and production guarantee Building" is Evergrande's top priority. Evergrande Real Estate Shenzhen Company from the construction organization to the site promotion, all the work is being carried out in an orderly manner. Up to now, Shenzhen company includes more than ten projects in Shenzhen, Dongguan, Jiangmen, Shanwei, Zhuhai and Zhongshan.

On November 26, Evergrande Pearl River Delta Company disclosed that at present, 63 buildings under construction in 15 regions, including Guangzhou, Foshan, Zhaoqing, Yangjiang, Qingyuan, Huizhou and Heyuan, have been fully resumed.

In order to get the money back quickly, Evergrande first chose to sell its listed stake. After selling a large stake in Shengjing Bank, Evergrande announced on November 18 that the company and its subsidiaries agreed to sell all their shares in Hengteng Network (0136 HK) as sellers for a total consideration of HK $2.127 billion. Evergrande will no longer hold any shares in Hengteng Network after the asset sale.

Although, based on the difference between the selling price and the book value of the stake in Hengteng Network on June 30, the transaction is expected to generate a loss of HK $8.5 billion, and Evergrande had to step in to obtain funds for the company's general operations.

According to preliminary statistics by a Chinese reporter from a securities firm, Evergrande has also reduced its shareholdings in Shengjing Bank, Hengteng Network, High-tech Investment Group, and Evergrande Bingquan Group since the beginning of this year, with a total realization of about 32.1 billion yuan.

At present, there has been no further progress in the sale of Evergrande's core assets, such as listed companies China Evergrande New Energy Vehicle and Evergrande Property Services.