China jails Evergrande founder Xu Jiayin for life, fines firm over $2 billion

China has sentenced Xu Jiayin, the founder of the real estate giant Evergrande, to life in prison. The company and its affiliate received fines totaling over $2 billion following a high-profile default five years ago.

Evergrande, once a symbol of China's property boom, faced financial distress after the government introduced measures to curb excessive borrowing and speculation. The company defaulted in 2021, struggling to repay creditors.

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Xu Jiayin was sentenced for multiple crimes and fined, received a life sentence, with political rights revoked for life and all his personal property confiscated.

The Shenzhen Intermediate People's Court found Xu Jiayin guilty of multiple crimes, including "large-scale financial fraud." His sentence includes the revocation of political rights for life and the confiscation of all personal property. The court stated that between 2016 and 2021, Evergrande and Xu "violated national laws by engaging in continuous, large-scale financial fraud and other means to inflate assets and conceal liabilities." They also allegedly gained control of financial institutions through bribery.

Five other senior Evergrande executives also received prison sentences ranging from six to 18 years for crimes such as fraud. Xu Jiayin had previously pleaded guilty to charges including embezzlement and bribery in April.

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violated national laws by engaging in continuous, large-scale financial fraud and other means to inflate assets and conceal liabilities.