SHENZHEN, China — Hui Ka Yan, the founder of China Evergrande Group, pleaded guilty to multiple charges including fraud, bribery, and the illegal appropriation of public deposits, a Chinese court announced Tuesday.
The Intermediate People's Court of Shenzhen released a statement via WeChat confirming that the billionaire, also known as Xu Jiayin, expressed regret during his trial.
Prosecutors charged Xu with a wide range of financial crimes. These include fraudulent fundraising, illegal loan granting, the illegal use of funds, and the fraudulent issuance of securities.
The court also listed embezzlement and corruption among the charges against the executive. The hearing was attended by representatives of former investors and members of the National People's Congress.
The collapse of a real estate titan
Xu's legal troubles follow his detention by Chinese police in September 2023. At the time, Evergrande reported that he was under "restrictive measures" due to suspected crimes.
Evergrande was once China's leading property developer, fueled by decades of rapid urban expansion. However, the company filed for bankruptcy in 2021 after failing to manage a massive debt load.
At its peak of instability, the developer held liabilities exceeding $300 billion. A Hong Kong court issued a liquidation order for the company in 2024.
The company's downfall began after Chinese regulators tightened restrictions on excessive debt in the property sector in 2020. This crackdown left developers unable to secure new financing, making their obligations to creditors and homebuyers unsustainable.
The crisis triggered a broader slump in the Chinese real estate market, impacting the world's second-largest economy and destabilizing global financial systems. Evergrande's shares were officially delisted from the Hong Kong Stock Exchange in 2025.
