From 2 Trillion to "No Money," Xu Jiayin Turns Out to Be Fully Detained

When the Hong Kong court ordered Xu Jiayin to pay litigation costs of HKD 1.2 million, his response was just two words: “No money.” This simple statement reveals the true condition of a businessman who once controlled 2 trillion rupiah. Through his lawyer’s statement in court, we understand that for more than two years, Xu Jiayin has truly lost his freedom.

860 Days Behind Bars, Xu Jiayin Has Lost All Freedom

Since September 2023, when official news announced that Xu Jiayin was detained on suspicion of committing a crime, speculation about his condition has continued to surface. Some say he is under loose house arrest, living in a large villa. Others claim he is criminally detained, with rumors of suicide circulating among the public.

However, Xu Jiayin’s lawyer’s statement in Hong Kong court finally provided the real answer. The lawyer stated that Xu Jiayin “is currently detained by mainland authorities, and all communication is strictly monitored.” The key word here is “detained,” not “house arrest.” The difference is significant: detention means complete deprivation of personal freedom, daily life managed entirely by the prison without independent living space, whereas house arrest only restricts movement.

For 860 days, Xu Jiayin has only been able to give very limited “general instructions” to the outside world. These instructions only include basic opinions without operational details, decision-making power, or involvement in sensitive issues. In other words, he cannot instruct anyone to do anything. These restrictions are designed to prevent asset transfers, hinder witnesses, and disrupt investigations. That’s why a litigation fee of HKD 1.2 million, which should be “trivial” for a billionaire, could be refused with “no money.”

Asset Hiding Strategies: From Offshore Accounts to Family Trusts

Behind Xu Jiayin’s inability to pay, a systematic strategy to hide assets has been uncovered. Xu’s lawyer mentioned that he once kept a collateral of HKD 20 million at a law firm to pay litigation costs, but this was stopped by authorities. But this is not the main issue, as Xu’s family owns far larger hidden assets.

Creditors have found four deposits under the name Ding Yumei (Xu Jiayin’s ex-wife), spread across Canada, Switzerland, Singapore, and Jersey, totaling about HKD 1.5 billion. Ding Yumei planned to divide this money into small parts, stored in various banks to complicate collection efforts. Fortunately, creditors discovered this strategy in time and temporarily froze those deposits.

A more surprising discovery emerged recently: Xu Jiayin’s spouse has a family trust in the United States totaling HKD 16 billion. Trust systems are known as “the Noah’s Ark for the wealthy,” because trusts uniquely ensure that even if the owner goes bankrupt, the trust continues to operate independently without debt claims.

Hong Kong Court Ruling: The HKD 16 Billion Trust Declared Invalid

In 2019, Xu Jiayin’s spouse established a family trust, stipulating that their two sons could benefit from the trust, while the principal belonged to their grandchildren. This strategy was designed to secure the family inheritance, but it “backfired.”

Hong Kong courts found that the trust’s establishment was not purely motivated; its main purpose was “fraudulent asset transfer.” Several factors led to this conclusion: First, since 2017, when Xu Jiayin was already aware of Evergrande’s problems, he insisted on suddenly establishing the trust in 2019, just before the crisis erupted. This action undermines the legal legitimacy of the trust.

Second, shortly after the trust was established, the couple secretly divorced, considered a “technical divorce” to avoid creditors. Third, although the beneficiaries were listed as children and grandchildren, in practice, Xu Jiayin’s family interfered in the trust’s use and investments, violating the rule that trusts must be managed independently by third parties.

Based on this thorough analysis, the Hong Kong court ruled that the trust is invalid, meaning the HKD 16 billion will be classified as part of Xu Jiayin’s debt repayment. This decision marks the end of all shortcuts to protect assets.

Xu Jiayin’s case demonstrates how surveillance and investigation systems can uncover structured asset concealment strategies. The urgent questions are: Are there other hidden assets? And how can regulatory systems be strengthened to prevent similar cases in the future?