Sunita SomvanshiThe founder of China\’s most indebted property developer, China Evergrande, was sentenced to life in prison by a Shenzhen court on August 20, 2026, capping the dramatic fall of a man who was once Asia\’s richest person.
Hui Ka Yan, also known as Xu Jiayin, was found guilty of embezzlement of assets and corporate bribery. He had pleaded guilty in April 2026. The Shenzhen Intermediate People\’s Court also fined his former companies 15.82 billion yuan (about $2.35 billion) for falsifying financial records and hiding debt.
Evergrande, founded in 1996, grew into a real estate empire worth hundreds of billions of dollars through aggressive borrowing. At its peak, the company\’s debt exceeded $300 billion, making it one of the world\’s most levered corporations. When Beijing introduced strict debt controls in 2020, Evergrande could no longer service its obligations, triggering defaults that rocked global financial markets.
“Hui and his businesses seriously disrupted the Chinese property market, resulting in significant economic losses,” the court said in its judgment. Hui\’s two sons, Xu Zhijian and Xu Tenghe, were also sentenced to prison terms ranging from 22 months to 18 years.
Evergrande\’s collapse in 2021 sent shockwaves through China\’s real estate sector, which accounts for roughly 25% of the country\’s GDP. The crisis spilled over into global markets when international banks and bondholders faced combined losses exceeding $150 billion. The property slump has since spread to other major developers, contributing to slower economic growth in China.
China\’s struggling property market has weighed heavily on the world\’s second-largest economy. Several other major developers have faced financial difficulties, with billions in unpaid debts and thousands of unfinished residential projects across the country.
The sentencing comes as Chinese authorities grapple with stabilizing a property sector that once drove national growth. Analysts say the case sends a clear signal that Beijing will pursue aggressive legal action against executives whose risky practices threaten financial stability. This follows our coverage of China\’s energy sector transitions and the broader economic challenges facing Chinese industries highlighted in our analysis of renewable energy investments.
The case also adds to a broader pattern of Chinese authorities tightening oversight of financial misconduct, as seen in last year’s conviction of Alibaba founder Jack Ma and the ongoing Evergrande debt crisis timeline that has reshaped global supply chains.
