Evergrande Founder Sentenced to Life for Financial Fraud

On August 25, 2025, the Hong Kong Stock Exchange delisted China Evergrande, marking a significant moment in the company’s troubled history. This development coincided with a court’s decision in Shenzhen where Hui Ka Yan, the founder of Evergrande, received a life sentence. The court imposed fines on the companies totaling $2.3 billion. Hui, also known as Xu Jiayin, faced convictions for his role in large-scale financial fraud.

Evergrande’s downfall began when Chinese authorities targeted excessive borrowing within the real estate industry in 2020. The company faced liabilities exceeding $300 billion, leading to a wider economic impact. The Shenzhen Intermediate People’s Court revealed that Hui inflated the group’s assets and concealed liabilities. He misused his position to orchestrate financial fraud and misappropriated company assets.

Several senior Evergrande executives received sentences of up to 18 years. They faced charges such as illegal collection of public deposits and fraud. The court detailed the fines: Evergrande Group was fined 8.82 billion yuan ($1.31 billion) and Evergrande Real Estate Group 7 billion yuan ($1.04 billion).

In April, Hui admitted to accusations including illegal absorption of public deposits, fraud, and bribery following his arrest. Established in 1996, China Evergrande defaulted on its debts in 2021, becoming the world’s most indebted real estate developer before its asset liquidation order.

Investigations by authorities in Hong Kong and mainland China revealed Evergrande manipulated financial data. Tactics involved prematurely booking revenue from property sales. Revenues were overstated by approximately $80 billion during 2019 and 2020.