Hui Ka Yan Pleads Guilty Amid Evergrande Collapse
A former steelworker who rose to become one of China’s wealthiest individuals has pleaded guilty to charges including fundraising fraud following the collapse of Evergrande, the world’s most indebted property developer.
The property group’s founder, Hui Ka Yan, "pleaded guilty and expressed remorse" during trial proceedings at a court in Shenzhen, a southern Chinese city, where he and others are being tried, the court announced on its official WeChat account. Hui also admitted to charges of misuse of funds and illegally taking public deposits.
Evergrande’s Financial Crisis and Social Impact
Evergrande, once China’s largest real estate company, has defaulted since 2021 on the majority of its $300 billion (£222 billion) liabilities, symbolizing the broader challenges facing China’s property sector.
The company’s failure to repay billions of dollars in wealth management products sparked significant frustration among lower and middle-class investors, many of whom lost their investments. This unrest led to protests and raised concerns about social stability.
was unable to obtain comment from Hui, aged 67, who has not appeared publicly since Chinese authorities detained him in 2023 following Evergrande’s default.
Additional Charges and Legal Proceedings
Hui, known as Xu Jiayin in Mandarin and based in Hong Kong, along with Evergrande, face further charges including illegally extending loans, fraudulently issuing securities, and bribery by company units, the Shenzhen municipal intermediate people’s court added. Verdicts are expected later, though no date has been set.
The maximum penalties for illegal fundraising include life imprisonment and property confiscation, while bribery charges can also result in life sentences.
Regulatory Actions and Background
In 2024, China’s securities regulator fined Hui $6.6 million and banned him from the securities market for life after determining that Evergrande’s leading business had inflated earnings and committed securities fraud.
Hui was raised by his grandmother in a rural village in central Henan province. After graduating from the Wuhan Iron and Steel Institute in 1982, he worked as a technician in a steel factory for a decade before building his fortune through affordable housing.
He later moved to Shenzhen, a rapidly developing special economic zone during Deng Xiaoping’s reform era, where he worked as a salesperson for a property company. In 1996, he founded Evergrande in Guangzhou, growing it into China’s largest property developer by contracted sales. Hui aggressively leveraged debt to finance thousands of developments across China and took the company public in 2009.
Public Image and Ventures
In 2012, Hui attended a Communist Party conference wearing a golden-buckled belt, earning him the label of a "red capitalist."
He also ventured into new industries, including electric vehicles and football, the latter being a particular interest of China’s President Xi Jinping.
In 2017, Forbes ranked Hui as Asia’s richest person with a net worth of $45.3 billion, but by early 2023, his estimated net worth had plummeted to approximately $3 billion.
Evergrande’s Liquidation and Asset Recovery Efforts
In 2024, Evergrande was ordered into liquidation by a Hong Kong court and was delisted from the Hong Kong stock exchange the previous year, marking the end of a turbulent boom-and-bust saga.
Outside mainland China, Evergrande’s liquidators have engaged in legal battles to freeze offshore assets belonging to Hui and his former spouse. These efforts aim to recover $6 billion in dividends and remuneration paid to Hui and other former executives.
The liquidators declined to comment on the ongoing case.
contributed to this report.
