Chinese court sentences founder of property developer Evergrande to life in prison
Evergrande founder Hui Ka Yan has been sentenced to life in prison by a Shenzhen court for large-scale financial fraud and misappropriation of assets. The ruling follows the company's 2021 collapse, which triggered a massive downturn in China's real estate sector.
Why it matters
This sentencing represents a significant government crackdown on the systemic financial risks posed by China's property sector, which has been a major drag on the global economy.
BEIJING — Chinese property developer Hui Ka Yan, founder of the Evergrande real estate group, has been sentenced to life in prison and the companies fined a total of $2.3 billion, a court in the southern city of Shenzhen said Thursday.
The decision marks a milestone in Evergrande's saga after it collapsed with more than $300 billion in liabilities when Chinese authorities cracked down on excessive borrowing in the real estate industry in 2020. That triggered a crunch among many developers and brought on a downturn in the property market that has weighed on the broader economy ever since.
The Shenzhen Intermediate People's Court convicted Hui, also known as Xu Jiayin, and Evergrande of engaged in large-scale financial fraud in inflating the group's assets and concealing its liabilities.
In a statement, the court also said Hui also abused his position in orchestrating financial fraud and misappropriating company assets.
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