Evergrande Founder Sentenced to Life in Prison as China's Housing

The once-mighty Evergrande Group, founded The shocking verdict marks a key moment in the fallout from Evergrande's collapse, which shook China's property sector and hit investors and domestic banks hard.

Life Imprisonment and Asset Confiscation

Hui Ka Yan pleaded guilty to several charges, including embezzlement of assets and corporate bribery, in April. The Shenzhen Intermediate People's Court also fined Evergrande Group 8.82bn yuan (£960m; $1.31bn), while its real estate unit was ordered to pay 7bn yuan.

Rise and Fall of the Property Giant

Hui, once Asia's richest person, rose from humble beginnings in rural China, where he was raised

He oversaw the company's rapid rise through an aggressive expansion programme funded with large amounts of borrowed money. Evergrande became China's biggest real estate developer, with a stock market valuation of more than $50bn (£36.7bn).

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Impact of Beijing's Measures

The firm was dealt a huge blow when Beijing introduced measures in 2020 to control debt in the country's property sector.

That led it to sell properties at huge discounts to stay afloat before collapsing in 2021. The company had taken millions of dollars in pre-sale funding from potential house buyers that were not used for construction, resulting in hundreds of unfinished projects.

Broader Market Impact

Evergrande's implosion has often been blamed for triggering a broader slump in China's property market that continues to weigh heavily on the economy. Anxious Chinese home buyers reel from Evergrande crisis as the company files for US bankruptcy protection and is ordered to liquidate.