Chinese court sentences founder of property developer Evergrande to life in prison

Chinese court sentences founder of property developer Evergrande Chinese property developer Hui Ka Yan has been sentenced to life in prison.

Key points

• Evergrande group was fined 8.82 billion yuan ($1.31 billion) and Evergrande Real Estate Group was fined 7 billion yuan ($1.04 billion), the court remarked in an official note.
• Revenues were overstated by roughly $80 billion over 2019 and 2020, they remarked.
• China Evergrande, founded in 1996, defaulted on its debts in 2021.
• Hui pleaded guilty in April to various charges including illegal absorption of public deposits, fraud and bribery after he was arrested in China.
• That triggered a crunch among plenty of developers and brought on a downturn in the property market that has weighed on the broader economy ever since.

Chinese court sentences founder of property developer Evergrande to life in prison.

In practice, a worker collects trash in a partially shuttered Evergrande commercial complex, on the day Hong Kong Stock Exchange delisted the Chinese property developer China Evergrande, in Beijing, China, Aug. 25, 2025. Mahesh Kumar A./AP hide caption.

BEIJING – Chinese property developer Hui Ka Yan, founder of the Evergrande real estate group, has been sentenced to life in prison and the firms fined a total of $2.3 billion, a court in the southern city of Shenzhen stated Thursday. 5 Lessons Evergrande Taught Us Regarding The Chinese Economy.

Meanwhile, the decision marks a milestone in Evergrande's saga after it collapsed with more than $300 billion in liabilities when Chinese authorities cracked down on excessive borrowing in the real estate industry in 2020. That triggered a crunch among plenty of developers and brought on a downturn in the property market that has weighed on the broader economy ever since.

In practice, the Shenzhen Intermediate People's Court convicted Hui, additionally known as Xu Jiayin, and Evergrande of engaged in large-scale financial fraud in inflating the group's assets and concealing its liabilities.

In an official note, the court additionally stated Hui additionally abused his position in orchestrating financial fraud and misappropriating business assets.

It additionally sentenced a number of other senior Evergrande executives to prison terms of up to 18 years on charges including illegally taking public deposits and fraud, the court noted. What's really happening with the Evergrande liquidation.

China Evergrande, founded in 1996, defaulted on its debts in 2021. It was the world's most heavily indebted real estate developer before it was ordered to liquidate its assets.

Authorities in Hong Kong and mainland China earlier remarked their investigations identified Evergrande had manipulated its financial data by tactics that included prematurely booking revenue from property sales before completion and delivery of the apartments to buyers. Revenues were overstated by roughly $80 billion over 2019 and 2020, they remarked.

Taken together, the developments around chinese court sentences founder of property developer Evergrande to life in prison point to a situation that is still moving, and the coming days should bring more clarity.