Archive · 20 Aug 2026
Evergrande Founder Hui Ka Yan Sentenced to Life in Prison
Hui Ka Yan built Evergrande into one of China’s biggest property companies.
The company borrowed heavily to buy land and build homes quickly.
Its growth made Hui one of Asia’s richest people.
But the debt became too large, especially after China introduced rules limiting property-sector borrowing.
Evergrande eventually defaulted on about $300 billion in liabilities.
A court in Shenzhen said Hui committed eight financial crimes and sentenced him to life in prison.
The court also ordered that his personal property be confiscated.
Evergrande and its main mainland subsidiary received billions of yuan in fines.
People and companies that are owed money are still waiting to recover their losses.
A Shenzhen court sentenced Evergrande founder Hui Ka Yan, also known as Xu Jiayin, to life in prison after he pleaded guilty to eight financial crimes.
The charges included misuse of funds, fundraising fraud, illegal acceptance of public deposits, unlawful lending, securities fraud, embezzlement and bribery.
The court ordered confiscation of Hui’s personal property and fined Evergrande 8.82 billion yuan and Hengda Real Estate 7 billion yuan.
Evergrande defaulted on roughly $300 billion in liabilities after years of aggressive, debt-funded expansion and later entered liquidation.
Creditors remain unpaid as liquidators had sold about $255 million in assets against roughly $45 billion in claims as of August last year.
- Who
- Hui Ka Yan, also known as Xu Jiayin, the 67-year-old founder of China Evergrande Group, and other Evergrande personnel.
- What
- A Shenzhen court sentenced Hui to life imprisonment after he pleaded guilty to eight financial crimes and ordered his personal property confiscated.
- When
- The sentence was announced on Thursday; Hui pleaded guilty in April after three years in detention.
- Where
- The sentence was issued by the Shenzhen Intermediate People’s Court in Shenzhen, southern China.
- Why
- The court said the crimes involved particularly large amounts, significant economic losses and serious social harm.
Evergrande’s Growth Strategy
Regulators’ Debt Concerns
Expansion and borrowing
Evergrande’s Growth Strategy
Hui promoted rapid turnover, low-priced homes and aggressive expansion, arguing that Evergrande’s asset value and sales model could cover debts linked to its highly leveraged products.
Regulators’ Debt Concerns
Regulators warned that Evergrande needed to address its debt burden, while its borrowing and land purchases eventually became unsustainable.
Meaning of the collapse
Evergrande’s Growth Strategy
Hui credited China’s education reforms, scholarships and economic opening with helping him leave rural Henan and build Evergrande.
Regulators’ Debt Concerns
The company’s failure became a symbol of the excesses of China’s property boom and contributed to concerns about economic growth, household confidence and financial markets.
- Defendant
- Hui Ka Yan, also known as Xu Jiayin, age 67
- Sentence
- Life imprisonment and confiscation of all personal property
- Charges
- Eight charges, including misuse of funds, fundraising fraud, illegal acceptance of public deposits, unlawful lending, securities fraud, embezzlement and bribery
- Company fines
- Evergrande was fined 8.82 billion yuan; Hengda Real Estate was fined 7 billion yuan
- Evergrande liabilities
- Roughly $300 billion
- Creditor claims
- Approximately $45 billion, compared with about $255 million in assets sold by liquidators as of August last year
- Hui’s estimated wealth
- $45.3 billion in 2017 and approximately $3 billion by 2023
