China’s Evergrande files for bankruptcy in US: Rise and fall of the real estate behemoth

The brainchild of steel worker Xu Jiayin, Evergrande was founded in 1996 with just eight employees. The firm quickly became China’s second-largest property developer and vaulted Xu to the position of Asia’s richest person. Experts say Evergrande’s business model had been flawed for a long time


The troubled Chinese real-estate firm Evergrande has filed for Chapter 15 bankruptcy in a US court.

The development comes five months after the real estate behemoth unveiled its long-awaited restructuring plan, the largest in China’s history, and 20 months after the firm defaulted on its debt – sparking a massive property crisis the reverberations of which are still being felt today.

Chapter 15 bankruptcy protection allows a court to step in when an insolvency case involves another country.

It is aimed at promoting cooperation between US courts, debtors, and other countries’ courts involved in cross-border bankruptcy proceedings.

Let’s take a closer look at the rise and fall of Evergrande:

 Humble beginnings

Evergrande sprung from the mind of Xu Jiayin.

As per Nikkei Asia, Xu, hailed from a poor family in Henan Province. His father was a World War II veteran and his mother died soon after giving birth to him.

Brought up by his grandmother, Xu recalled in a 2017 speech how he ate only sweet potato and steamed bread in his school years.

“The sheets I laid, the quilts I covered, and the clothes I wore were all covered with piles of patches,” said Xu, also known as Hui Ka Yan in Cantonese.


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