Evergrande founder gets life term

Chinese court fines his companies over $2 billion for large-scale financial fraud in 2019 and 2020

Evergrande’s fall

1. $300bn+ liabilities when Evergrande collapsed
2. $2.35bn in combined fines imposed
3. $80bn in revenue allegedly overstated
4. 50+ people jailed for up to 18 years
5. 2021 Evergrande defaulted on its debts

Hong Kong: Evergrande founder Hui Ka Yan has been sentenced to life in prison for large-scale financial fraud, a court in Shenzhen said on Thursday.

The Shenzhen Intermedi­ate People’s Court convicted Hui, 67, and Evergrande of inflating the group’s assets and concealing its liabilities. It said Hui, also known as Xu Jiayin, abused his position to orchestrate fraud and misappropriate company assets.

Hui’s sons and several senior executives were also sentenced on charges including illegally taking public deposits and fundraising fraud.

Evergrande, once China’s biggest property developers, defaulted on its debts in 2021. Its collapse helped trigger a prolonged downturn in China’s property sector.