Founder of China's Evergrande Pleads Guilty to Fraud Charges

Hui Ka Yan, founder of the Chinese property developer Evergrande, has pleaded guilty to embezzlement and corporate bribery charges during a public hearing held on 13 and 14 April 2026 in Shenzhen.

The Shenzhen Intermediate People's Court confirmed that the verdict will be announced at a later date.

Hui expressed remorse during the hearing, which was reported by Chinese state media.

Evergrande's collapse in 2021 triggered a significant slump in China's property market, affecting investors and domestic banks.

At the time, the company had around 1,300 projects across 280 cities and was known as the world's most indebted property developer with debts of approximately $300 billion.

The court heard that Evergrande diverted millions of dollars in pre-sale funds from potential homebuyers away from construction to new projects, resulting in hundreds of unfinished properties nationwide.

Hui, also known as Xu Jiayin, founded Evergrande in 1996 after rising from humble beginnings in rural China.

The company expanded beyond property development into electric cars and food and drinks.

In March 2024, Hui was fined $6.5 million and banned from China's capital markets for life for overstating the company's revenue by $78 billion.

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