China Sentences Evergrande Founder Hui Ka Yan to Life in Prison
The court also fined Evergrande and its real estate arm 15.82 billion yuan, and 56 people received jail terms, state media reported.
- On Thursday, the Shenzhen Intermediate People's Court sentenced China Evergrande Group founder Hui Ka Yan to life in prison and ordered confiscation of all his personal property.
- Evergrande, once China's premier developer, has defaulted since 2021 on most of its $300 billion in liabilities, emblematic of a prolonged crisis in the country's property sector.
- The court also fined Evergrande 8.82 billion yuan and its subsidiary Hengda Real Estate 7 billion yuan, sentencing five other senior executives to prison terms ranging from six to 18 years.
- Hui pleaded guilty in April to eight charges including misuse of funds, fundraising fraud, and illegally taking public deposits, preceding the final sentencing.
- State media CCTV reported the sentence as part of a broader crackdown on financial misconduct, as Evergrande's collapse has long dragged on the world's second-biggest economy.
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The real estate magnate fell into disrepute and the founder Evergrande Xu Jiayin, who was at one point the richest man in China, seemed exhausted when a Chinese court sentenced him, Thursday, to life imprisonment, informs France24.
A Chinese court on Thursday sentenced the founder of troubled real estate giant Evergrande to life in prison and fined the company and its subsidiary more than $2 billion for a high-profile default five years ago.
In 1996, Xu Jiayin founded Evergrande, a recipe that combined competitively priced housing, presales, rapid capital rotation and abundant financing.
The tycoon Xu Jiayin received the maximum penalty for financial crimes, while the real estate company will have to pay a millionaire penalty.
Hui Ka Yan created China's largest real estate developer, but accumulated liabilities of approximately $300 billion, ultimately ending up in bankruptcy. Another 56 people were convicted, including their children. This is China's vulnerable side, where the housing market continues to decline amid high debt, unfinished construction sites, unsold inventory, and a national demand that is failing to regain momentum.
Hui Ka Yan, founder of Evergrande, is sentenced to life imprisonment for financial fraud. His assets are confiscated while China's real estate market is slow to recover from the bankruptcy.
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