The founder of embattled Chinese property behemoth Evergrande was sentenced to life in prison on Thursday, according to state media.
Evergrande Group was once China’s largest real estate developer, but it has been hobbled by debt since 2021, with $300 billion in liabilities. Its crisis – like those of other property giants – has been at the heart of a wider Chinese real estate shock, a long-term drag the world’s second-largest economy.
As well as the life sentence, its once billionaire founder Hui Ka Yan was ordered to forfeit all his personal assets, Xinhua reported, citing a verdict handed down by a court in the southern metropolis of Shenzhen. He was also stripped of all political rights for life.
Evergrande Group was fined 8.82 billion yuan ($1.23 billion), and Evergrande Real Estate was fined 7 billion yuan ($1.04 billion), it said.
Hui and Evergrande Group were found guilty of several charges, including financial fraud; inflating assets and concealing liabilities; illegally absorbing public deposits; fundraising fraud; and illegal disclosure of important information.
“The criminal conduct of China Evergrande Group, Evergrande Real Estate, and Hui Ka Yan seriously disrupted the order of the socialist market economy, infringed upon public and private property rights, and undermined the integrity of public officials in the performance of their duties,” said the verdict.
This is a breaking news story and will be updated.
