Carefully observe how Xu Jiayin operates a super fund of 20 trillion RMB like a master, a man who plays human nature to the extreme!
Evergrande Group has a nickname in the industry: one blueprint conquers the world.
Before the houses are built, they can be sold using future money to fill the current gaps.
The funds just received have already been used to acquire another piece of land.
Layer upon layer of leverage, playing the 'time difference' to the extreme.
The most critical step is the pre-sale system + high turnover leverage.
By continuously obtaining land through pre-sale returns, and then using new land to leverage bank and capital market funds, they continue to sell futures by opening new developments.
The entire system is essentially a continuously self-amplifying financial cycle. But what’s truly ruthless goes beyond this. He turns every type of person in the entire chain into an 'investor.'
Offering employees high salaries, then using financial products to reclaim funds for the company.
Customers pay for housing, but the funds are prioritized for expansion, rather than delivery.
Partners do not provide cash, instead using commercial bills to drag you along, equivalent to you providing them with capital.
Financial institutions continue to layer leverage through trusts, financing, and channels.
Finally forming an extreme structure:
Employees' money goes into company wealth management.
Customers' money is used for land expansion.
Suppliers' money is promised as advance funding through commercial bills and shares.
Banks and capital amplify leverage, pooling all funds together to do one thing: continue rolling into a bigger scheme. The most outrageous part is that Xu Jiayin can paint a bigger future for everyone, with high returns on commercial bills, high yields on equity, and continuous scale expansion. As long as this story can continue to be told, it is a business miracle; once cash flow stops, one realizes this is not a real estate company, but a super fund at the level of 20 trillion.
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