The businessman who established China Evergrande, one of the world’s most debt-burdened property companies, has admitted to criminal wrongdoing in a Chinese courtroom, according to court documents released Tuesday.
Hui Ka Yan, who also goes by Xu Jiayin, entered guilty pleas to multiple criminal charges during proceedings that took place Monday and Tuesday at the Shenzhen Intermediate People’s Court. The charges include unlawfully collecting public deposits, fraud, and corporate bribery, the court announced via WeChat.
Chinese authorities arrested Hui in September 2023 while investigating suspected criminal activity. Court officials said the defendant showed regret during the proceedings, though sentencing will be announced at a future date.
Additional accusations against Hui encompass unlawful lending practices, misuse of company funds, and violating regulations regarding the disclosure of important business information, according to the court statement.
The courtroom included representatives from previous fundraising activities and members from China’s National People’s Congress, the nation’s parliament.
By 2024, when a Hong Kong court issued a liquidation ruling, Evergrande had become the globe’s most debt-heavy real estate company, owing more than $300 billion to creditors.
Hui established the company during the mid-1990s, and by the time of the 2024 court decision, more than 90% of its holdings were located within mainland China. The Hong Kong Stock Exchange delisted China Evergrande shares in 2025.
Evergrande joined dozens of other property developers that failed to meet debt obligations after Chinese authorities implemented stricter lending rules for the real estate sector in 2020. These companies found themselves unable to secure new financing, making their massive debts to lenders and buyers impossible to maintain.
The regulatory crackdown triggered a widespread crisis in China’s property market, weakening the world’s second-biggest economy and creating financial instability both within China and internationally.
Throughout the court proceedings, China Evergrande Group confronted accusations including illegally collecting public deposits, fundraising fraud, corporate bribery, and unauthorized lending. The company’s mainland property division, Evergrande Real Estate Group, faced additional allegations of fraudulent securities offerings.
