China Evergrande Founder Pleads Guilty to Fraud in Shenzhen Trial
The founder of China Evergrande (HKG:3333), Xu Jiayin, pleaded guilty to eight charges, including misuse of funds, fundraising fraud, and illegally taking public deposits, Xinhua News Agency reported Tuesday, citing The Shenzhen Intermediate People's Court.Prosecutors also accused Xu of illegally granting loans. They charged China Evergrande Group and its unit, Evergrande Real Estate Group, with offenses including fraudulent issuance of securities.In 2024, China's securities regulator fined Xu $6.6 million and barred him from the securities market for life after finding Evergrande's flagship unit had inflated earnings and committed securities fraud.Creditors have lodged claims totaling about HK$350 billion, while liquidators have taken control of more than 100 subsidiaries and reported asset sales of about HK$2 billion since early 2024.The company's debt troubles surfaced in December 2021 when it first defaulted on a US dollar bond.In 2024, a Hong Kong court ordered Evergrande's liquidation, with the company later delisted, ending one of China's most high-profile property collapses.