The creator of China Evergrande Group has admitted to multiple financial crimes in a Shenzhen courtroom, marking a significant development in one of the world’s largest corporate debt crises.
Hui Ka Yan, whose company became the globe’s most heavily indebted real estate firm, acknowledged guilt on charges of fund misappropriation, fundraising fraud, and unlawfully accepting public deposits, according to court officials in the southern Chinese city.
During Monday and Tuesday court sessions, Hui “pleaded guilty and expressed remorse” for his actions, the Shenzhen Municipal Intermediate People’s Court announced through its official WeChat social media platform.
Evergrande has been unable to meet obligations on most of its $300 billion debt load since 2021, along with failing to honor billions in wealth management payments to investors. These financial troubles reflect broader challenges facing China’s real estate industry, which has significantly impacted the nation’s economic expansion.
The court representatives for Evergrande’s liquidation process refused to provide statements regarding the ongoing legal proceedings.
Hui has remained out of public view since Chinese officials took him into custody in 2023, following his company’s financial collapse. Attempts to reach him for comment have been unsuccessful.
China’s financial regulatory body imposed a $6.6 million penalty on Hui last year and permanently banned him from securities markets. This action came after investigators discovered that Evergrande’s primary subsidiary had artificially inflated its financial performance and committed securities violations.
Additional charges against Hui and his company include unauthorized lending activities, fraudulent security issuance, and bribery involving subsidiary operations, the court stated. Officials indicated that final judgments will be announced at a future date, though no specific timeline was provided.
