Shenzhen: A Chinese court has sentenced Xu Jiayin, also known as Hui Ka-yan, the billionaire founder of China Evergrande Group, to life in prison and ordered the seizure of all his personal assets. Xu Jiayin pleaded guilty to eight counts, including embezzlement, fraudulent fundraising, and illegally soliciting deposits from the public.
According to Thai News Agency, Evergrande, once a leading real estate developer in China, has defaulted on most of its debt, which amounts to approximately $300 billion (or 10.5 trillion baht), since 2021. This financial crisis has highlighted longstanding issues in China's real estate sector, affecting the country's economy, which is the second-largest in the world.
The life sentence handed to Xu Jiayin marks the conclusion of a career that saw him rise from poverty to significant wealth. However, this verdict is unlikely to mend the financial harm suffered by his creditors, both within China and internationally. Additionally, a court in Shenzhen ordered Evergrande Corporation to pay a fine of 8.82 billion yuan (approximately 43 billion baht), while its subsidiary, Hengda Real Estate, was fined 7 billion yuan (approximately 34 billion baht). Five senior executives received prison sentences ranging from 6 to 18 years, along with fines.