The end of the real estate giant.. The founder of the Chinese “Evergrande” confesses to fraud crimes
The founder of China’s Evergrande Group, the world’s most indebted real estate developer, has pleaded guilty to charges including misuse of funds, fundraising fraud and illegal seizure of public deposits, a court in the southern Chinese city of Shenzhen said.
The company defaulted The real estate giant has stopped repaying most of its debts amounting to $300 billion since 2021, in a crisis that embodies the suffering of The Chinese real estate sector has been hindering economic growth for a long time.
The court stated, in a statement published on its official account on the application "WeChat"That the founder, Hui Ka Yan, "He pleaded guilty and expressed remorse" During the trial sessions held on Monday and Tuesday against him and Evergrande.
The court added that Hui, and the company, also face charges related to illegal extension of loans, fraudulent issuance of securities, and bribery by units, with rulings to be issued later.
The company’s inability to pay billions of dollars in wealth management products led to intense dissatisfaction among the lower and middle classes, as many lost their investments, sparking Protests and threats to social stability.
Life imprisonment and confiscation of property are the maximum penalties for illegal fundraising, while the penalty for bribery can also reach life imprisonment.
In 2024, the China Securities Regulatory Commission imposed a fine of $6.6 million on Hui, who was considered one of the richest people in China, and banned him from working in Stock Market for life, after it was discovered that Evergrande’s main housing unit had overstated its profits and committed securities fraud.
After its founding in 1996, Evergrande turned into the largest real estate developer in China through sales contracts, relying heavily on bank loans.
In 2024, the company received a liquidation order from a Hong Kong court, and was delisted from the Hong Kong Stock Exchange. The past, bringing an end to an exciting story of boom and bust.
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