Founder of China’s Evergrande Group Hui Ka-yan pleads guilty in fraud trial

Hui Ka-yan, the founder and former chairman of China Evergrande Group, has pleaded guilty to a sweeping array of financial crimes in a landmark trial at the Shenzhen Intermediate People’s Court. The charges, which include embezzlement of corporate assets, corporate bribery, and illegally absorbing public deposits, stem from the massive collapse of what was once China's largest property developer. The trial, held over two days, concluded with final statements from both Hui and corporate representatives, with observers including National People's Congress deputies in attendance. The guilty plea marks a pivotal moment in the government's crackdown on the debt-ridden real estate sector that has rattled the Chinese economy.

The case builds on previous regulatory action, including a record 4.2 billion yuan ($616 million) fine levied against Evergrande in March 2024 by the China Securities Regulatory Commission. The regulator found the company had fraudulently inflated its sales by a staggering 564 billion yuan in the years leading to its insolvency. Hui himself was personally fined 47 million yuan and banned for life from China's capital markets. With the trial complete, the court will now deliberate before issuing a formal judgment, which will be closely watched as a benchmark for how China handles corporate malfeasance within its most crisis-hit industry.