Former China Evergrande Group chairman Xu Jiayin stands in court docket in the course of the first-instance verdict on the Shenzhen Intermediate Individuals’s Court docket in South China’s Guangdong Province on August 20, 2026. Picture: CCTV Information
Former China Evergrande Group chairman Xu Jiayin, also called Hui Ka Yan, was sentenced to life imprisonment in first-instance verdict on Thursday after being convicted of a number of crimes, together with illegally absorbing public deposits, fundraising fraud and fraudulent issuance of securities, CCTV Information reported.
Xu, 67, was additionally disadvantaged of political rights for all times and had all his private property confiscated. Evergrande Group was fined 8.82 billion yuan ($1.23 billion), whereas Evergrande Actual Property Group was fined 7 billion yuan, in line with the decision.
The Shenzhen Intermediate Individuals’s Court docket in South China’s Guangdong Province publicly delivered its first-instance verdict on Thursday morning within the instances involving Evergrande Group Co, Evergrande Actual Property Group Co and Xu. The court docket ordered the continued restoration of unlawful good points and restitution for any unrecovered quantity.
The court docket discovered that Xu was the precise controller of Evergrande Group and had general duty for its operations. He managed and managed a variety of corporations, together with Evergrande Actual Property, Evergrande Wealth and Evergrande Nanchang, with investments spanning actual property, property companies and finance.
From 2016 to 2021, Evergrande Group, Evergrande Actual Property and Xu violated Chinese language legal guidelines by participating in sustained, large-scale monetary fraud, together with inflating belongings and concealing liabilities, the court docket discovered. Their conduct concerned crimes together with illegally absorbing public deposits, fundraising fraud, fraudulent issuance of securities and unlawful disclosure of vital data.
The court docket additionally discovered that Evergrande Group and Xu obtained management of monetary establishments via bribery and different means, and illegally obtained credit score and insurance coverage funds to be used by Evergrande Group. These acts concerned crimes together with providing bribes by an entity, illegally granting loans and illegally utilizing funds.
Xu additionally took benefit of his place as chairman of Evergrande Actual Property to arrange monetary fraud and misappropriate firm property within the type of dividend funds, in line with the court docket.
The court docket dominated that Evergrande Group and Xu have been responsible of illegally absorbing public deposits, fundraising fraud, illegally granting loans, fraudulent issuance of securities, unlawful disclosure of vital data and providing bribes by an entity. Xu was additionally discovered responsible of illegally utilizing funds and occupational embezzlement, whereas Evergrande Actual Property was convicted of fraudulent issuance of securities.
The court docket mentioned the crimes dedicated by Evergrande Group, Evergrande Actual Property and Xu significantly disrupted the socialist market financial order, infringed upon private and non-private property rights and undermined the integrity of official conduct.
The court docket mentioned the quantities concerned have been exceptionally massive, the circumstances have been notably egregious, the crimes brought on exceptionally extreme financial losses and the social hurt was notably severe, warranting extreme punishment in accordance with the regulation.
The court docket mentioned the sentences have been imposed in accordance with the regulation primarily based on the information, nature and circumstances of the crimes and the diploma of hurt brought on to society. Below related legal guidelines and judicial interpretations, compensation for losses takes precedence over the enforcement of fines and property confiscation.
Additionally on Thursday, the Shenzhen Intermediate Individuals’s Court docket and the Shenzhen Nanshan District Individuals’s Court docket delivered verdicts in associated instances involving Evergrande Group personnel over crimes together with illegally absorbing public deposits, fundraising fraud and illegally utilizing funds. Fifty-six individuals, together with Zhen Litao, Ke Peng, Xu Tenghe, Xu Zhijian, Du Liang and Liang Dong, acquired jail phrases starting from 18 years to at least one 12 months and 10 months, together with fines or property confiscation. The courts additionally ordered the continued restoration of unlawful good points and restitution for any unrecovered quantity.
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