The founder of China Evergrande Group, Hui Ka Yan, has been sentenced to life in prison and had all his personal property confiscated, according to state media reports. Hui pleaded guilty in April to charges including embezzlement and corporate bribery.
The Shenzhen Intermediate People's Court also imposed substantial fines on Evergrande Group and its real estate unit, totaling billions of yuan. The company was fined 8.82 billion yuan (approximately $1.31 billion), while its real estate subsidiary received a fine of 7 billion yuan.
Hui's sentencing is a significant development in the fallout from Evergrande's collapse, a crisis that sent shockwaves through China's property sector and left investors and domestic banks facing substantial losses. The firm's implosion, which began in 2021, is widely considered a catalyst for the ongoing slump in China's property market, which continues to exert considerable pressure on the nation's economy.
Evergrande, founded by Hui in 1996, experienced rapid expansion fueled by aggressive borrowing strategies. At its peak, it was China's largest real estate developer, boasting a stock market valuation exceeding $50 billion. Hui, who rose from modest beginnings, oversaw the company's dramatic ascent before its eventual downfall.