Evergrande founder Hui Ka Yan sentenced to life in prison

Hui Ka Yan, the founder of China Evergrande Group, received a life sentence from the Shenzhen Intermediate People's Court on August 20, 2026. The court also ordered the confiscation of all his personal property.

Hui pleaded guilty in April to eight charges. These included misuse of funds, fundraising fraud, illegally taking public deposits, illegally extending loans, fraudulently issuing securities, and bribery.

The court fined Evergrande Group 8.82 billion yuan and its real estate unit Hengda 7 billion yuan. Five other senior executives received prison terms of six to 18 years. In total, 56 people linked to the company faced sentences.

Evergrande once ranked as China's largest property developer by sales. It defaulted on most of its roughly 300 billion dollars in liabilities after 2021. The collapse contributed to a prolonged downturn in China's property sector that has weighed on the broader economy.

Hui built the company from 1996. At his peak in 2017, Forbes listed his net worth at 45.3 billion dollars, making him Asia's richest person at the time. He rose from a rural background in Henan province.

The court described the acts as involving particularly huge amounts and egregious circumstances that caused significant economic losses and serious social harm. Ordinary investors who bought wealth-management products linked to the company lost substantial sums, prompting protests in earlier years.

Liquidation proceedings in Hong Kong have moved slowly. By mid-2025 liquidators had sold only about 255 million dollars in assets against claims exceeding 45 billion dollars from creditors.

The sentencing closes one chapter of the Evergrande saga. Recovery for many creditors remains limited, and the property sector continues to adjust under tighter regulation.