The founder and former chairman of China Evergrande Group, Hui Ka-Yan, has been sentenced to life imprisonment after being convicted of multiple financial crimes, including fundraising fraud, corporate bribery and misuse of funds.
A court in Shenzhen, China, handed down the sentence on Thursday, five years after the collapse of the property giant sent shockwaves through China’s economy and financial markets.
The 67-year-old businessman pleaded guilty to eight counts, including financial misrepresentation, concealing liabilities, inflating company assets and illegally extending loans.
The court also found Hui guilty of overstating Evergrande’s revenue by about $80 billion in 2019 and 2020, allegedly presenting investors and the public with a misleading picture of the company’s financial position.
He was also convicted of fraudulently issuing securities and accepting or facilitating corporate bribery.
In addition to the life sentence, the court ordered the confiscation of Hui’s property and stripped him of his political rights for life.
Evergrande was fined $1.31 billion, while its onshore subsidiary, Hengda Real Estate, was ordered to pay an additional $1.04 billion.
“The criminal acts of Evergrande Group, Hengda Real Estate, and Hui Ka Yan involved particularly huge amounts and egregious circumstances,” the court said.
The court said the offences caused significant economic losses and serious social harm, warranting severe punishment under Chinese law.
Five other senior Evergrande executives were also convicted and sentenced to prison terms ranging from six to 18 years, alongside financial penalties.
Evergrande’s collapse became one of the most prominent symbols of China’s property-sector crisis. The heavily indebted developer struggled to meet its financial obligations and complete housing projects, contributing to wider concerns about the country’s property market and financial stability.
