Kamal Ghorui
Hui Ka Yan, the founder of heavily indebted property giant China Evergrande has admitted guilt to multiple offences. These include unlawfully taking public deposits, fraud, and corporate bribery, according to a statement released on Tuesday by a court in mainland China.Hui Ka Yan, also known as Xu Jiayin, had been taken into custody in September 2023 on suspicion of criminal activity. In a post shared on WeChat, the Shenzhen Intermediate People’s Court said Hui showed regret during court proceedings held from Monday to Tuesday. The verdict will be announced at a later stage.The court added that Hui also faced allegations such as illegal lending, misuse of funds, and improper disclosure of key information, among other violations.Individuals present during the hearings included those linked to earlier fundraising efforts as well as members of the National People’s Congress, China’s legislative body.At the time a Hong Kong court ordered its liquidation in 2024, Evergrande was the most indebted real estate developer globally, with liabilities exceeding USD 300 billion.Established in the mid-1990s by Hui, the company held more than 90 per cent of its assets within mainland China, as noted in the 2024 ruling. Its shares were subsequently delisted from the Hong Kong Stock Exchange in 2025.Evergrande is one of many developers that defaulted after Chinese authorities moved in 2020 to curb excessive borrowing in the property sector. As access to funding dried up, these firms were unable to manage their growing obligations to creditors and homebuyers.The regulatory tightening pushed the property market into turmoil, weighing on the world’s second-largest economy and unsettling financial systems both within China and abroad.In court, China Evergrande Group faced accusations including illegal fundraising through public deposits, fraud, corporate bribery, and unlawful lending practices. Its mainland subsidiary, Evergrande Real Estate Group, was also accused of issuing securities through fraudulent means.
