Evergrande Founder Pleads Guilty to Fraud Charges in China
Hui Ka Yan, the founder of troubled property giant Evergrande Group, has pleaded guilty to multiple offences including embezzlement and corporate bribery, according to a court statement.
The plea was entered during hearings held on April 13 and 14 in Shenzhen, where Hui reportedly expressed remorse over his actions. Authorities say a verdict will be delivered at a later date.
The case marks a significant development in the aftermath of Evergrande’s dramatic collapse, which sent shockwaves through China’s property market and financial system.
Prosecutors told the court that the company misused funds collected from homebuyers, diverting money meant for construction into new projects. This practice left hundreds of housing developments unfinished across the country.
Once China’s largest real estate developer, Evergrande’s rapid growth was fueled by heavy borrowing, with debts estimated at around $300 billion. Its troubles escalated in 2021 after tighter government regulations on property sector debt exposed its fragile financial structure.
Hui, also known as Xu Jiayin, built the company from modest beginnings into a sprawling business empire that extended beyond real estate into sectors such as electric vehicles, food and sports. At its peak, the firm operated more than 1,300 projects across hundreds of cities.
However, its fortunes declined sharply as the crisis deepened. The company’s market value plunged dramatically, and its shares were eventually delisted from the Hong Kong stock exchange in 2025.
Hui himself was previously fined and banned for life from China’s capital markets after authorities found that Evergrande had significantly overstated its revenues.
The company’s collapse is widely seen as a major factor behind the ongoing downturn in China’s property sector, with ripple effects continuing to impact the broader economy.
