Founder of China’s Evergrande pleads guilty to fraud

Founder of China’s Evergrande Admits Guilt in Fraud Case

Hui Ka Yan, the CEO of China’s troubled property developer Evergrande, has admitted to several charges, including misappropriating company assets and engaging in corporate bribery, as confirmed by a court statement. During a public hearing in Shenzhen on April 13 and 14, Hui conveyed regret over his actions, according to Chinese state media. The court has yet to deliver its final judgment but noted that the guilty plea represents a critical turning point in the aftermath of Evergrande’s financial collapse.

“During the hearing, Hui Ka Yan expressed remorse for his role in the company’s mismanagement,” reported Chinese state media.

The collapse of Evergrande, once China’s largest real estate firm, triggered a significant downturn in the nation’s property market. The company’s debt crisis in 2021 led to widespread disruptions, leaving investors and domestic banks facing severe losses. At its peak, Evergrande had a stock market value exceeding $50 billion and operated over 1,300 projects in 280 Chinese cities. However, its empire was built on $300 billion in borrowed money, making it the most indebted property developer globally.

The court revealed that Evergrande had siphoned millions in pre-sale funds from buyers, which were not allocated to construction. These funds were redirected to new ventures, resulting in hundreds of unfinished properties across the country. Hui’s admission comes after his company was fined $6.5 million and banned from China’s capital markets for life in March 2024 for inflating revenue by $78 billion.

A Rise from Rural Roots

Hui, who also goes by Xu Jiayin, began his career in a remote Chinese village, where he was raised by his grandmother. He later ventured into real estate, founding Evergrande in 1996. The firm’s rapid growth was fueled by China’s economic expansion, which relied heavily on borrowing. By 2017, Hui had become Asia’s wealthiest individual, with a net worth estimated at $42.5 billion, according to Forbes.

Evergrande’s diversification into electric vehicles, food production, and even football—through its majority stake in Guangzhou FC—highlighted its ambitious expansion. Despite its reach, the company’s stock value plummeted by 99% before being delisted from Hong Kong in August 2025, marking the end of its over a decade-long journey on the exchange.