Founder of collapsed Chinese property giant Evergrande sentenced to life in prison

The founder of Evergrande, the once dominant Chinese property company, has been sentenced to life in prison for a litany of financial crimes, according to the Shenzhen Intermediate People’s Court. Hui Ka Yan, the company's 84-year-old chairman, admitted guilt in April to embezzlement, corporate bribery, falsifying records, and concealing debt.

In addition to his life sentence, the court ordered the confiscation of all of Hui's personal assets and levied a staggering fine of 15.82 billion yuan ($2.35 billion) against his former companies for their involvement in the fraudulent activities.

The court's ruling underscores the severity of Evergrande's role in disrupting China's real estate market, which contributed to significant economic losses. The company's collapse in 2021, following Beijing's stricter debt controls, saw the firm sell properties at heavily discounted prices to stay afloat, resulting in numerous unfinished projects. Hui's wealth and influence have diminished dramatically since Evergrande's downfall, once making him Asia's richest individual.

His sons, Xu Zhijian and Xu Tenghe, were also sentenced to prison terms ranging from 22 months to 18 years, as reported by state media. The Evergrande saga, which saw the firm's market valuation plummet by 99% and its shares delisted from the Hong Kong exchange, has been a catalyst for a broader slump in China's property sector, heavily impacting the country's economy.

Despite being named Asia's richest man, Hui's fortunes have now taken a dramatic turn, as his company's failure reverberates through China's real estate industry and the broader economy.