The founder of China's Evergrande, Hui Ka Yan, has been sentenced to life in prison for his role in the country's biggest property collapse. Hui, once ranked Asia's richest man, was found guilty of embezzlement and corporate bribery.
Evergrande's Downfall
Hui's sentencing marks a key moment in the fallout from Evergrande's collapse, which shook China's property sector and hit investors and domestic banks hard. The company's rapid rise was fueled by an aggressive expansion programme funded with large amounts of borrowed money. At its height, Evergrande was the biggest firm in China's real estate industry, which made up about a third of the country's gross domestic product.
Court Fines and Confiscation
The Shenzhen Intermediate People's Court fined Hui's former companies a total of 15.82bn yuan, equivalent to £1.73bn or $2.35bn, over multiple crimes, including falsifying records and concealing debt. Hui's personal property was also confiscated. Other Evergrande executives, including Hui's two sons, Xu Zhijian and Xu Tenghe, were sentenced to jail terms ranging from 22 months to 18 years.
A Rise and Fall of Epic Proportions
Hui rose from humble beginnings in rural China, where he was raised by his grandmother before venturing into property development and setting up Evergrande in 1996. The company became China's biggest real estate developer, with a stock market valuation of more than $50bn. However, the firm was dealt a huge blow when Beijing introduced measures in 2020 to control debt in the country's property sector.
The Aftermath
Evergrande's implosion has often been blamed for triggering a broader slump in China's property market that continues to weigh heavily on the economy. The industry's ongoing problems have weighed heavily on the world's second-largest economy, with several other major developers facing financial woes. The property market was a significant driver of growth and an important revenue source for local governments.
A New Chapter
Hui's sentencing marks the beginning of a new chapter in the story of Evergrande's collapse. The company's stock market valuation shrank by 99% before its shares were removed from the Hong Kong exchange in August 2025. As the dust settles, it remains to be seen how the country's property sector will recover from the devastating impact of Evergrande's collapse.
Source: Joy Online
