China jails Evergrande founder for life, fines firm more than US$2 billion

A Chinese court has sentenced Hui Ka Yan, the founder of the embattled property giant China Evergrande Group, to life in prison and ordered the confiscation of all his personal property. The company and its real estate arm were also fined a combined 15.82 billion yuan (approximately $2.4 billion) for large-scale financial fraud.

The Shenzhen Intermediate People's Court stated that between 2016 and 2021, Evergrande and Hui engaged in continuous, large-scale financial fraud. They allegedly inflated assets and concealed liabilities, using various means to do so. The court also indicated that the parties gained control of financial institutions through bribery, though specific institutions were not named.

Hui, also known as Xu Jiayin, had previously pleaded guilty in April to charges including embezzlement and bribery. The sentencing follows Evergrande's default in 2021, which occurred after the government introduced measures to curb excessive borrowing and speculation in the property market. The company was once a symbol of China's booming real estate sector.

In addition to Hui, five other senior executives from Evergrande Group received prison sentences ranging from six to 18 years for their roles in the fraud. The court's decision marks a significant legal action against one of China's most prominent corporate defaults.