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China's Evergrande Founder Sentenced to Life in Prison

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China's embattled property developer Evergrande (HKG:3333) founder Hui Ka Yan was sentenced to life imprisonment by the Shenzhen Intermediate People's Court on Thursday, state media CCTV News reported.

Hui, also known as Xu Jiayin, was also deprived of political rights for life and had all his personal property confiscated. Evergrande Group was fined 8.82 billion yuan, while Evergrande Real Estate was fined 7 billion yuan, according to the report.

The court found Hui guilty of multiple crimes, including fundraising fraud, illegal absorption of public deposits, and fraudulent securities issuance.

He was also convicted of illegally using funds and embezzlement, among other offences.

The court said Evergrande Group, Evergrande Real Estate, and Hui repeatedly falsified financial statements, inflated assets, and concealed liabilities between 2016 and 2021.

It said the offences caused particularly serious economic losses and social harm. Illegal gains will continue to be recovered, with restitution taking priority over fines and property confiscation.

A total of 56 other people linked to Evergrande were also sentenced on Thursday, CCTV reported.

Evergrande's debt crisis came to a head in December 2021 when the company defaulted on a US dollar bond.

A Hong Kong court ordered the company's liquidation in 2024, and Evergrande was delisted from the Hong Kong stock exchange last year, marking the collapse of one of China's biggest property developers.

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