Hui Ka Yan, the founder of China Evergrande Group, has been sentenced to life imprisonment by a court in Shenzhen after being found guilty of multiple financial offenses. The former billionaire also had his personal assets ordered to be confiscated, marking a dramatic end to the career of a businessman who once ranked among Asia’s wealthiest individuals.
The case comes years after Evergrande’s debt crisis shook China’s property market and contributed to wider financial pressure on the country’s economy.
Evergrande Founder Faces Life Sentence
Hui Ka Yan, also known as Xu Jiayin, was convicted on eight charges connected to financial misconduct. The offenses included fundraising fraud, misuse of funds, illegally taking public deposits, illegal lending activities, securities-related fraud and bribery.
The Shenzhen court imposed a life sentence and ordered the complete confiscation of Hui’s personal property. He had pleaded guilty to the charges earlier this year.
Chinese authorities said the financial wrongdoing involved activities carried out over several years as Evergrande expanded rapidly through heavy borrowing and aggressive property development.
Evergrande Collapse and Massive Debt
Evergrande grew into one of China’s biggest property developers during the country’s long real estate boom. However, mounting debt and tighter government restrictions on excessive borrowing placed increasing pressure on the company.
The developer defaulted on its debt in 2021, with liabilities of more than $300 billion. Its financial troubles became a major symbol of China’s prolonged property-sector crisis.
Evergrande was later placed into liquidation proceedings in Hong Kong, while efforts to recover assets for creditors have continued. The company has since been delisted from the Hong Kong stock exchange.
Company and Executives Also Punished
The court also imposed major financial penalties on Evergrande and its mainland property subsidiary. China Evergrande was fined 8.82 billion yuan, while Hengda Real Estate was ordered to pay 7 billion yuan.
Several other Evergrande executives were sentenced in connection with the case, with prison terms ranging from six to 18 years.
The ruling represents one of the most significant legal consequences arising from China’s property-sector meltdown and highlights the authorities’ efforts to hold senior executives accountable for financial misconduct.
