HONG KONG: A Chinese court has sentenced Hui Ka Yan, the billionaire founder of China Evergrande Group, to life in prison. This decision comes amid serious financial troubles for the company, which is known as the world’s most indebted property developer. The court also ordered the confiscation of all his personal assets.
In April, Hui admitted guilt to several charges, including misusing funds, fraudulently raising money, and illegally accepting public deposits.
Evergrande, which was once a leading real estate developer in China, has been struggling since 2021, failing to meet its obligations on more than $300 billion in debt. This situation reflects broader challenges within China’s property sector, which has been impacting the country’s economy for a considerable time.
While Hui’s sentencing marks a dramatic turn in his journey from poverty to wealth, it is unlikely to provide much relief for Evergrande’s creditors, both in China and abroad.
The court, located in the southern city of Shenzhen, also imposed significant fines, totaling 8.82 billion yuan (approximately $1.31 billion) on Evergrande and 7 billion yuan on its main subsidiary, Hengda Real Estate. Additionally, five other high-ranking company officials received prison sentences ranging from six to 18 years along with their fines.
