Evergrande founder gets life sentence as China fines property giant US$2b

Beijing, August 20 - China's Supreme Court handed a severe sentence to the founder of Evergrande, China's largest property developer, on Thursday - life imprisonment and fines totalling over US$2 billion. The ruling came five years after the company's default on loans, marking a dramatic downfall for a company once seen as the embodiment of Chinese property aspirations.

Evergrande Group, now facing a 15.82 billion yuan fine from the court, had been unable to secure new credit due to tighter government regulations on borrowing and speculation in the real estate sector. Xu Jiayin, the company's founder and chief executive, was convicted of "large-scale financial fraud" and other charges, leading to his life sentence.

The court also revoked his political rights permanently and confiscated all his personal assets. The charges highlighted the company's alleged use of financial fraud and bribery to manipulate asset values. Xu admitted guilt to embezzlement and bribery in April, alongside five other senior executives of Evergrande Group, who were given prison terms ranging from six to 18 years for their roles in the fraud.