Evergrande founder Hui Ka Yan has been sentenced to life in prison for financial crimes
The property giant collapsed after years of debt-fuelled expansion and defaulted on more than $300 billion in liabilities
Evergrande’s liquidation continues, reflecting the wider crisis that has hit China’s property sector
China Evergrande founder Hui Ka Yan has been sentenced to life in prison by a court in Shenzhen for financial crimes including fraud, misuse of funds and illegally taking public deposits, marking the dramatic downfall of one of China's most powerful property tycoons.
According to Reuters, Hui, once Asia's richest person, also had all his personal assets confiscated. Evergrande was fined 8.82 billion yuan ($1.31 billion), while its flagship subsidiary Hengda was fined 7 billion yuan. Five other senior executives received prison terms ranging from six to 18 years, while 56 people were sentenced in total.
From Property Boom To Collapse
Hui founded Evergrande in 1996 and built it into one of China's largest property developers through an aggressive expansion strategy based heavily on borrowing.
The company's model relied on acquiring land, selling homes before completion and using proceeds to finance further projects. By 2020, Evergrande's annual sales had reached about $100 billion, according to Reuters.
Hui's wealth peaked at an estimated $45.3 billion in 2017, making him Asia's richest person at the time. He expanded Evergrande beyond property into electric vehicles, football and other businesses as the company continued taking on debt.
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What Went Wrong?
Evergrande's rapid expansion left it carrying enormous liabilities. China's property market began deteriorating as regulators moved to curb excessive borrowing by developers and demand for housing weakened.
Evergrande defaulted on its overseas debt in 2021, exposing a wider crisis across China's property sector. The company eventually accumulated more than $300 billion in liabilities, making it the world's most indebted property developer.
The collapse affected homebuyers, suppliers, investors and financial institutions and became a symbol of the broader problems facing China's debt-heavy property market.
Why Hui Was Convicted
Hui pleaded guilty to eight charges, including misuse of funds, fundraising fraud, illegal public deposits, loan mismanagement, securities fraud and bribery, as per Reuters.
The case followed earlier regulatory action against Evergrande. In 2024, China's securities regulator accused the group's flagship unit of inflating revenues and profits and committing securities fraud. Hui was subsequently banned from the securities market for life and fined 47 million yuan.
The latest sentence therefore represents the most severe legal reckoning yet for the businessman whose aggressive expansion had come to symbolise China's property boom.
Evergrande After Hui
Evergrande's collapse has continued long after its 2021 default.
A Hong Kong court ordered the company's liquidation in 2024 after attempts to restructure its offshore debt failed. Reuters reported that progress in recovering assets has been limited, with only about $255 million in assets sold against $45 billion in creditor claims.
The liquidation process has also involved efforts to recover offshore assets linked to Hui and other former executives.
Hui's life sentence closes one chapter in Evergrande's spectacular collapse, but the company's unfinished liquidation and the wider property crisis continue to weigh on China's economy.
