ANALYSIS: Factional Politics Spell Trouble for Evergrande Chairman

Xu Jiayin, Chairman of the Board of Evergrande Group, held the distinction of being the sole Standing Committee Member of the Chinese People's Political Consultative Conference (CPPCC) from the private entrepreneur domain. The photo shows him at a news conference on the sidelines of the 12th National People's Congress in Beijing, China , on March 6, 2016. Etienne Oliveau/Getty Images

Last month Xu Jiayin, the chairman of China’s real estate giant Evergrande Group, was arrested along with several of its top executives based on suspicion of financial illegalities.

This has been seen as peculiar since Mr. Xu—also called Hui Ka Yan—was known to be a fervent supporter of the ruling Chinese Communist Party (CCP).