A Chinese court has sentenced Evergrande founder Hui Ka Yan to life in prison for fraud, bribery, and illegal financial activities.
Key facts
- •Hui Ka Yan pleaded guilty to fraud, corporate bribery, and illegally taking public deposits.
- •Evergrande defaulted on $300 billion in liabilities in 2021.
- •The court found revenue was inflated by $80 billion in 2019 and 2020.
- •Five other senior executives received prison sentences between six and 18 years.
- •Evergrande was ordered to pay 8.82 billion yuan in fines.
The founder of the liquidated property developer Evergrande, Hui Ka Yan, was sentenced to life in prison on Thursday by the Shenzhen Intermediate People's Court. Hui, who pleaded guilty in April to charges including fraud and corporate bribery, also had his political rights revoked for life and all personal property confiscated.
By the numbers
Financial Crimes and Fraud
The court determined that Hui violated national laws by engaging in large-scale financial fraud to inflate assets and conceal liabilities. Investigators found that Evergrande inflated its revenue by approximately $80 billion during 2019 and 2020 by booking property sales before completion. Additionally, the court stated that Hui used bribery to gain control of financial institutions.
Broader Corporate Penalties
Beyond Hui’s sentence, the court imposed significant fines on the company, ordering Evergrande to pay 8.82 billion yuan and its subsidiary, Hengda Real Estate, 7 billion yuan. Five other senior executives received prison terms ranging from six to 18 years. The company, which defaulted on $300 billion in liabilities in 2021, has faced a liquidation order and subsequent delisting.
Timeline
- 2019-2020Evergrande inflated its revenue by approximately $80 billion.
- 2020China initiated a crackdown on excessive borrowing in the property sector.
- 2021Evergrande defaulted on most of its $300 billion in liabilities.
- April 2025Hui Ka Yan pleaded guilty to fraud and bribery charges.
- ThursdayThe Shenzhen Intermediate People's Court sentenced Hui to life in prison.
Advertisement
This article was independently rewritten by ManyPress editorial AI from reporting originally published by Deutsche Welle Business.
