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In spring 552, after hearing that Xiao Yi was attacking Hou Jing—and, not knowing that Xiao Yi's general Wang Sengbian had already by this point defeated Hou and recaptured Jiankang—Xiao Ji made the comment, "My seventh brother [i.e., Xiao Yi] is a man of literature. How can he succeed militarily?" At that time, flowers were growing from the columns of his mansion, and he believed it to be a divine sign of favor, and he therefore declared himself emperor. When his subordinates Wang Senglüe (王僧略, Wang Sengbian's brother) and Xu Peng () advised against the action, he had them killed—an action that caused his cousin Xiao Hui (), whom he had created the Prince of Qin Commandery, to sigh and comment that killing skillful men was a sign of impending disaster. Meanwhile, he also summoned Xiao Xun's assistant Liu Fan, intending to make Liu Fan a member of his staff, but Liu refused and insisted on returning to Xiao Xun, and Xiao Ji finally relented and did so. (Soon, however, with Yuwen Tai having put Nanzheng under siege for months and with Yang Qianyun unable to advance to lift the siege, Xiao Xun surrendered, and Nanzheng fell into Western Wei's hands.) Xiao Ji created Xiao Yuanzhao crown prince and created his other sons imperial princes.