Evergrande founder sentenced to life in prison
The founder of China Evergrande, Xu Jiayin, was sentenced to life imprisonment by a Chinese court for fraud and financial crimes, including falsifying financial reports and illegally diverting company assets. The company and its subsidiaries were heavily fined, and all his personal property was ordered to be confiscated.
Consensus
- The founder of China Evergrande, Xu Jia Yin, was sentenced to life imprisonment by a court in Shenzhen.
- All personal property of Xu Jia Yin was ordered to be confiscated.
- Evergrande and its subsidiary Hengda Real Estate were fined 8.82 billion and 7 billion yuan respectively.
- The crimes committed by Evergrande and Xu Jia Yin occurred between 2016 and 2021.
- The court found that financial statements were falsified and assets were illegally diverted under the guise of dividends.
- The company was declared insolvent in January 2024 by a Hong Kong court.
- The case involved illegal fundraising, securities fraud, and failure to disclose information.
- 56 other individuals connected to Evergrande received prison sentences ranging from one year and ten months to 18 years, along with fines or asset confiscation.
- The Evergrande crisis is considered one of the most significant examples of China's real estate debt problems.
Points of divergence
- The founder's name is Huéi Kǎ Yǎn (also known as Héi Kǎyǎn), not Xu Jiayin. — interfax
- The company's market capitalization reached $50 billion in 2017, and Xu Jiayin's net worth was $45.3 billion according to Forbes. — interfax
- Evergrande's shares were delisted from Hong Kong stock exchange in 2025. — interfax
- The company expanded into bottled water, professional football, and electric vehicles. — interfax
Coverage (2 sources)
- Chinese billionaire sentenced to life after company collapse — Вести
- Founder of Chinese developer China Evergrande received life sentence — Интерфакс