Saga of China Evergrande founder Hui Ka-yan ends with life sentence
Sentence for ‘multiple combined crimes’ in Shenzhen court signals end of property sector’s ‘old‑era growth model’, analyst says
Meanwhile, Evergrande was fined 8.82 billion yuan (US$1.31 billion), while its onshore operating unit Hengda Real Estate was fined 7 billion yuan – some of the biggest corporate fines ever levied by a Chinese court in a criminal case.
The 67-year-old Hui, also known as Xu Jiayin, was also deprived of political rights for life. He pleaded guilty to charges including embezzlement of corporate assets and corporate bribery in April.
According to the court, the illegal gains of the defendants shall be further recovered, and where recovery is insufficient, restitution shall be ordered.
The violations by Evergrande, Hengda and Hui took place between 2016 and 2021, the court said in its judgment. Through “sustained and large‑scale financial fraud”, the court added, they “inflated assets, concealed liabilities and committed crimes”, including “illegal absorption of public deposits, fundraising fraud, fraudulent issuance of securities and illegal disclosure of key information”.