Source:Guangzhou Daily

Yesterday, Evergrande was successfully listed in HKEX. So far, “five real estate giants in Guangdong” all successfully gather in HKEX, which is to the satisfaction of all. Xu Jiayin is not the only happiest person. Those institutional investors are also happy. Their risky investment made in the past has been well rewarded with the success of Evergrande.
        In 2008, due to the setback in listing, Evergrande suffered one more “chilly winter” than other property enterprises. Evergrande decided to dilute 16% of equity and increase the capital by 600 million US dollars. Calculated based on the upper limit of the issue price of 4 HKD, the market value of such batch of shares has reached about ten billion HKD, equivalent to obtaining double excess earnings. Of course, the biggest winner is Xu Jiayin. Through this successful listing, he not only obtains the funds required for the great development of the company, but also eliminates the threat from the Valuation Adjustment Mechanism signed with investment banks. Xu Jiayin, holding 67.55% of the shares, firmly controls the course of Evergrande, the real estate aircraft carrier, and will have no obstacle from now on.
        Those who are familiar with Evergrande all know, that the achievements of Evergrande today may be attributed to Xu Jiayin alone. With the drastic operation style, the mode of thought different from others and the unconventional standard of behavior, Xu Jiayin sets up his absolute authority and also enables the company to achieve great-leap-forward development. There is a “nine-one principle” in the risk investment industry, i.e. be prepared that 9 out of 10 investments will fail, but just 1 success is enough to gain sufficient returns. And the risk investment is usually not on a specific project itself, but on the project executor. The repeated investment in Evergrande by institutional investors is actually the vote of confidence on the capability of Xu Jiayin.