Evergrande founder Hui Ka Yan sentenced to life in prison
A Chinese court sentenced Evergrande founder Hui Ka Yan to life in prison for fraud and misuse of funds, capping a dramatic fall from grace.
A court in Shenzhen has sentenced Hui Ka Yan, the founder of China Evergrande Group, to life in prison. The 67-year-old, once Asia's richest man, was found guilty of eight charges, including fundraising fraud, illegally taking public deposits, and misuse of funds. The court also ordered the confiscation of all his personal property.
Hui's downfall marks a stunning reversal for a man who, just five years ago, stood beaming at the Chinese Communist Party's centenary celebrations in Tiananmen Square. At the time, he appeared relaxed and confident, an invitation widely seen as a sign of official backing for the billionaire.
Just months later, Evergrande, the company he built into China's premier developer, defaulted on its overseas debts. The collapse of the world's most-indebted property developer became a symbol of a broader crisis that continues to weigh on the Chinese economy.
Hui's journey began in a rural village in Henan province, where he was raised by his grandmother. A former steel technician, he built his fortune on low-priced homes, expanding aggressively through heavy borrowing to fund land purchases while selling properties quickly at lower margins. By 2020, Evergrande's annual sales had reached 700 billion yuan.
His rise was also marked by a willingness to court powerful allies. He invested in electric cars and soccer, both passions of President Xi Jinping. In Hong Kong, he became a core member of a tight-knit "poker club" of tycoons, reportedly losing money deliberately in games to win the favour of the late New World Development founder Cheng Yu Tung, who later injected $150 million into Evergrande before its 2009 IPO.
Described by former employees as a workaholic with a low public profile, Hui set ambitious targets and insisted others follow his work ethic. He often assured investors that the company's high turnover and asset value were enough to cover its debts.
In a 2018 charity award speech, Hui credited the state for his success, saying everything he and Evergrande had was "given by the party, by the country, and by society." He pleaded guilty in April after three years in detention. The liquidators of Evergrande, appointed by a Hong Kong court, declined to comment on the sentence.