Evergrande Founder Pleads Guilty to Embezzlement and Bribery

Hui Ka Yan, the founder of China's Evergrande Group, has pleaded guilty to several charges, including embezzlement of corporate assets and corporate bribery, according to a court statement.

Hui expressed remorse during a public hearing on April 13 and 14 in Shenzhen, as reported by Chinese state media. The court will announce its verdict at a later date.

Background of Evergrande's Crisis

Evergrande, once China's largest real estate firm with a stock market valuation of over $50 billion, collapsed into a debt-driven crisis in 2021. The company had taken millions of dollars in pre-sale funding from potential house buyers, which were not used for construction. Instead, the funds were diverted to new projects, resulting in hundreds of unfinished properties across China.

Hui, also known as Xu Jiayin, rose from humble beginnings in rural China. He was raised by his grandmother before venturing into property development and setting up Evergrande in 1996. The company became known as the world's most indebted property developer after building its empire on $300 billion of borrowed money.

In 2020, Beijing introduced new rules to control property debt in the country, leading Evergrande to sell its properties at significant discounts to ensure a steady income stream. Hui was once Asia's richest person, with a fortune estimated at $42.5 billion in 2017, according to Forbes.

Evergrande's business expanded beyond property, including electric cars, food, and drinks. The firm also bought a majority stake in Guangzhou FC, which became China's top football team. However, the company's stock market valuation shrank by 99% before its shares were delisted from the Hong Kong exchange in August 2025.