Hui Ka Yan (Xu Jiayin), the founder of China’s Evergrande Group, has been handed a life sentence by a Shenzhen court, which also ordered the confiscation of all his assets. This follows his guilty plea on charges including embezzlement and corporate bribery.
The verdict against Hui was accompanied by financial penalties, including an CNY 8.82 billion fine for Evergrande and a CNY 7 billion fine for its onshore unit. Chinese authorities stated that the offenses involved extremely large sums and serious misconduct, asserting that the company’s actions led to substantial economic harm and affected society on a wide scale.
Hui’s case is a significant development following the downfall of Evergrande, once the leading property developer in China and at one time valued at over $50 billion. The company became the focal point of a real estate crisis after defaulting on its bond payments in 2021, which triggered concerns over China’s wider property market and caused losses for investors and banks.
Other executives connected to Evergrande, including Hui’s sons Xu Zhijian and Xu Tenghe, also received prison sentences ranging from nearly two years to 18 years. Hui had been in custody since late 2023, as further details emerged about Evergrande’s high levels of leverage, which involved not only banks and bond markets but also employees. An effort to restructure the company’s debts—which exceeded $300 billion—collapsed in 2024, leading a Hong Kong court to order Evergrande’s liquidation after its restructuring plan was found insufficient.
Subsequently, Evergrande was removed from the Hong Kong Stock Exchange in 2025 after a lengthy trading suspension. Recovery efforts by liquidators are ongoing, including attempts to locate assets held by Hui’s former wife, Ding Yumei, who is reported to be living in London.
Hui founded Evergrande in 1996, expanding the company rapidly using aggressive borrowing. At the peak of his success, both Hui and Evergrande became prominent figures in China’s booming property sector, with Hui previously regarded as Asia’s wealthiest individual before the company’s collapse.
