Xu Jiayin, founder of the real estate development company Evergrande, has been sentenced to life imprisonment by a Chinese court. The billionaire, also known by his Cantonese name Hui Ka Yan, was found guilty of large-scale financial fraud. He has also been stripped of his civil rights for life, and all of his personal assets are to be confiscated.
Evergrande and its main real estate subsidiary were fined a total of 15,82 billion yuan, or about two billion euros. The group was once China's leading real estate developer, fueled by rapid urbanization and the sector's massive debt. Tighter credit conditions precipitated its default in 2021, before triggering a lasting crisis in the Chinese real estate market.
Artificially inflated assets
Between 2016 and 2021, Evergrande executives allegedly orchestrated a continuous fraud designed to artificially inflate the group's assets and conceal some of its debts. They are also accused of gaining control of financial institutions through the payment of bribes. The identities of the institutions involved have not been made public.
Five other former senior Evergrande executives were sentenced to prison terms ranging from six to eighteen years for various offenses. This ruling represents one of the harshest sentences ever handed down to a leader in China's real estate sector. The group's collapse continues to weigh heavily on the country's economy, as many housing projects remain unfinished and consumer confidence in real estate remains fragile.
Community
Comments
Write a comment
Be the first to comment on this article.