Hui Ka Yan, founder of China Evergrande Group and once one of Asia’s richest men, has been sentenced to life in prison for fraud, bribery and other financial crimes linked to the collapse of the heavily indebted property developer.
A court in Shenzhen handed down the sentence on August 20, five years after Evergrande’s default sent shockwaves through China’s property sector and financial markets. Hui, 67, pleaded guilty in April to eight charges, including fundraising fraud, misuse of funds, illegally accepting public deposits, fraudulent issuance of securities and bribery. The court also ordered the confiscation of Hui’s personal assets. Evergrande was fined 8.82 billion yuan ($1.31 billion), while its main subsidiary, Hengda Real Estate, was fined another 7 billion yuan. Five former senior executives received prison terms ranging from six to 18 years, while state media reported that 56 people connected to the company were sentenced in total.
Evergrande became China’s largest property developer by contracted sales by aggressively borrowing to finance its expansion. The company eventually defaulted on most of its roughly $300 billion in liabilities, leaving homeowners, investors and creditors facing substantial losses. The collapse also contributed to a prolonged crisis in China’s property market.
The consequences for creditors are far from over. A Hong Kong court ordered Evergrande’s liquidation in 2024, but the process has progressed slowly. Liquidators are also pursuing Hui and his former spouse over billions of dollars in dividends and remuneration they allegedly received.
China’s securities regulator previously fined Hui $6.6 million and permanently barred him from the securities market after finding that Evergrande’s flagship unit had inflated financial results and committed securities fraud. The case marks the dramatic end of Hui’s rise from a rural upbringing to the head of one of China’s largest corporate empires.