China sentences Evergrande founder to life in prison

Chinese courts have sentenced Evergrande founder Hui Ka Yan, also known as Xu Jiayin, to life in prison for large-scale financial fraud that inflated assets and hid liabilities. Shenzhen Intermediate People's Court also fined his former companies about $2.3 billion and confiscated his personal property, capping a collapse that rattled China's housing market.

Key Takeaways

• Hui Ka Yan received a life sentence; his personal property was confiscated.
• Evergrande Group and Evergrande Real Estate Group were fined a combined 15.82 billion yuan (about $2.3 billion).
• The Shenzhen court cited fraud that inflated assets and concealed liabilities after Evergrande's collapse with more than $300 billion in liabilities.
• Other senior executives, including Hui's two sons, received prison terms of up to 18 years.

What sentence did the Evergrande founder receive?

On Thursday, the Shenzhen Intermediate People's Court sentenced Hui Ka Yan to life imprisonment. According to BBC reporting, the court also ordered that all of his personal property be confiscated.

The court convicted Hui and Evergrande of engaging in large-scale financial fraud by inflating the group's assets and concealing its liabilities. In its statement, the court said Hui abused his position in orchestrating financial fraud and misappropriating company assets.

Evergrande Group was fined 8.82 billion yuan ($1.31 billion) and Evergrande Real Estate Group was fined 7 billion yuan ($1.04 billion), for a total of about $2.3 billion.

Why does the Evergrande ruling matter for housing markets?

Evergrande's fall became a symbol of China's property downturn. The developer collapsed with more than $300 billion in liabilities after authorities cracked down on excessive borrowing in the real estate industry in 2020, a crunch that spread to other developers and has weighed on the broader economy.

China Evergrande, founded in 1996, defaulted on its debts in 2021 and was later ordered to liquidate. At its peak it was China's biggest real estate developer, with a stock market valuation of more than $50 billion, and Hui was once ranked Asia's richest man.

For readers following global property and high-end development stories, BlasterPost covers related coverage in our Luxury Real Estate & Dream Homes section.

What charges did Hui Ka Yan face before sentencing?

Hui pleaded guilty in April to charges that included illegal absorption of public deposits, fraud, and bribery after his arrest in China. BBC reporting also noted embezzlement of assets and corporate bribery among the charges he admitted.

Hong Kong and mainland investigators previously found Evergrande manipulated financial data, including booking revenue from property sales before homes were completed and delivered. Revenues were overstated by roughly $78 billion to $80 billion over 2019 and 2020.

In court proceedings in April, it was heard that millions of dollars in pre-sale funding from home buyers were not used for construction and were instead channelled to new developments, leaving hundreds of unfinished projects. In March 2024, Hui was fined $6.5 million and banned for life from China's capital markets over the revenue overstatement.

Several other senior Evergrande executives were sentenced to terms ranging from 22 months to 18 years, including Hui's sons Xu Zhijian and Xu Tenghe, according to state media cited by the BBC. Evergrande's shares were removed from the Hong Kong exchange in August 2025 after their valuation had shrunk by 99%.