Evergrande Founder Hui Ka Yan Pleads Guilty to Fraud
Evergrande Founder Hui Ka Yan Pleads Guilty to Fraud
Hui Ka Yan pleads guilty in Shenzhen to fundraising fraud and related charges as Evergrande's debt crisis continues to ripple through China's economy.
Shenzhen — Hui Ka Yan, the founder of Evergrande and once one of China’s wealthiest businessmen, pleaded guilty in a southern China court to fundraising fraud, as well as misuse of funds and illegally taking public deposits. The case against him and the property giant centers on the era of Evergrande’s rapid expansion and the ensuing debt crisis that left the group with about $300 billion in liabilities.
He also faces charges including illegally extending loans, fraudulently issuing securities and bribery by units. The court said verdicts will be handed down later, with maximum penalties for illegal fundraising potentially life imprisonment and similar outcomes for bribery.
Evergrande defaulted on most of its roughly $300 billion in liabilities since 2021, a saga that has become a symbol of China’s property slump and a drag on the wider economy. In 2024, China’s securities regulator fined Hui about $6.6 million and barred him from the securities market for life after findings of inflated earnings and securities fraud by Evergrande’s core operations.
Hui, who rose from a rural background and a steelworker to billionaire founder, has not been seen in public since authorities detained him in 2023 following the company’s collapse. The case has rattled investors who saw wealth products tied to Evergrande’s fortunes erased and sparked protests in parts of China.
While the details of the court proceedings are still unfolding, the broader takeaway is that the Evergrande saga continues to unfold, underscoring the strain on China’s property sector and the lingering questions about governance and accountability in one of the country’s most infamous corporate collapses.
