The founder of the world's most indebted developer China Evergrande, Hui Ka Yan, admitted guilt in capital raising fraud, misappropriation of funds, and a number of other crimes, writes Reuters, citing a statement from the People's Court of Shenzhen.
A Guilty Head Is Not Counted by the Sword?
Hui Ka Yan, who owes more than $300 billion, admitted guilt and expressed remorse for his actions during court hearings on Monday and Tuesday.
He and his company Evergrande are also accused of illegal loan issuance, securities fraud, and bribery of officials. Verdicts will be delivered later, but the exact date is unknown. Hui Ka Yan faces life imprisonment and asset confiscation for illegal fundraising. Life imprisonment is also stipulated as a punishment for bribery.
The businessman has not appeared in public since his detention by Chinese authorities in 2023. In 2024, he was fined $6.6 million and banned for life from operating in the securities market after financial discrepancies were revealed in Evergrande's flagship division and his securities fraud.
Once the Richest Person in Asia
Founded in 1996, Evergrande was once the largest developer in China. In 2017, its market capitalization reached $50 billion, and Hui Ka Yan's net worth (according to Forbes) was $45.3 billion, making him the richest person in Asia. Riding the wave of success, the company completed over 1,300 construction projects in 280 cities and ventured into bottled water, professional football, and electric vehicles.
However, Evergrande then faced a debt crisis - its debt exceeded $300 billion, and by the end of 2021, it defaulted on dollar bonds.
Negotiations with creditors for debt restructuring failed, and in 2024, the court issued a ruling for the company's liquidation. In 2025, its shares were delisted in Hong Kong.
Evergrande's troubles are considered one of the key triggers for the prolonged downturn in the Chinese real estate market, notes Bloomberg.
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