NewzThe founder of China Evergrande Group, the world's most-indebted property developer, was sentenced to life in prison by a Chinese court on Thursday, five years after the firm's collapse shook the nation's economy and financial markets. Chinese property developer Hui Ka Yan, founder of the Evergrande real estate group, has been sentenced to life in prison and the companies fined a total of US$2.3 billion, a court in the southern city of Shenzhen said Thursday. HONG KONG (AP) — Chinese property developer Hui Ka Yan, founder of the Evergrande real estate group, has been sentenced to life in prison and the companies were fined a total of more than $2 billion, a court in the southern city of Shenzhen said Thursday.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 many developers and brought on a downturn in the property market that has weighed on the broader economy ever since.The Shenzhen Intermediate People's Court convicted Hui, 67, and Evergrande of engaging in large-scale financial fraud in inflating the group’s assets and concealing its liabilities.In a statement, the court also said Hui, also known as Xu Jiayin, abused his position in orchestrating 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), the court said in the statement.“The amount involved is exceptionally large, the circumstances are particularly egregious, and extraordinarily heavy economic losses have been caused,” the court’s statement said. “The harm to society is extremely serious. Therefore, severe punishment should be given in accordance with the law.”Hui’s sons, Xu Tenghe and Xu Zhijian, were also sentenced alongside senior Evergrande executives and others linked to the group on charges including illegally taking public deposits, fundraising fraud and the illegal use of funds, China's official Xinhua News Agency said.
A total of more than 50 individuals were sentenced to imprisonment of between 22 months and 18 years, Xinhua said, although a breakdown of sentencing details was not provided.A photo of Hui's courtroom appearance released by the Shenzhen court on Thursday showed an aged Hui, who used to be a high-profile figure but had long been out of public view, wearing a navy blue shirt standing in between two uniformed officers behind a sign that read “defendant.”Hui pleaded guilty in April to various charges including illegal absorption of public deposits, fraud and bribery after he was detained in China.China Evergrande, founded in 1996, defaulted on its debts in 2021. It was the world’s most heavily indebted real estate de… Hui Ka Yan, who had faced eight charges including misuse of funds and illegally taking public deposits, pleaded guilty in April, following China Evergrande's collapse five years ago after a quarter of a century in operation.
Chinese property developer Hui Ka Yan has been sentenced to life in prison. The decision marks a milestone in Evergrande's saga after it collapsed with more than $300 billion in liabilities.(Image credit: Mahesh Kumar A.) The Shenzhen Intermediate People’s Court convicted Hui, 67, and Evergrande of engaging in large-scale financial fraud in inflating the group’s assets and concealing its liabilities.
In a statement, the court also said Hui, also known as Xu Jiayin, abused his position in orchestrating 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), the court said in the statement. “The amount involved is exceptionally large, the circumstances are particularly egregious, and extraordinarily heavy economic losses have been caused,” the court’s statement said.
A photo of Hui’s courtroom appearance released by the Shenzhen court on Thursday showed an aged Hui, who used to be a high-profile figure but had long been out of public view, wearing a navy blue shirt standing in between two uniformed officers behind a sign that read “defendant.” Hui pleaded guilty in April to various charges including illegal absorption of public deposits, fraud and bribery after he was detained in China. China Evergrande, founded in 1996, defaulted on its debts in 2021. It was the world’s most heavily indebted real …
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