Guilty Plea in Public Hearing

Hui Ka Yan. Also known as Xu Jiayin. Expressed remorse during a public hearing held on 13 and 14 April in the city of Shenzhen, as reported by Chinese state media; the hearing marked a significant development in the legal proceedings against the former business magnate.

The court announced it will deliver its verdict at a later date, leaving the potential consequences of the guilty plea uncertain, and Hui’s admission of guilt includes charges related to the mismanagement of company assets and corporate bribery, according to the court’s statement.

Evergrande’s Financial Collapse

Evergrande was once China’s largest real estate company, with a stock market valuation exceeding $50bn in its peak years. However, the firm collapsed into a debt crisis in 2021 that led to the unraveling of its business empire. The company was built largely on $300bn of borrowed money, according to reports.

During the court proceedings, it was revealed that the company had taken millions of dollars in pre-sale funding from potential house buyers, which were not used for construction. Instead, the funds were diverted to new projects, resulting in hundreds of unfinished properties across China. This misallocation of funds significantly contributed to the company’s financial downfall.

Rise and Fall of a Business Empire

Hui, who was once Asia’s richest person with a fortune estimated at $42.5bn in 2017, according to Forbes, rose from humble beginnings in rural China. He was raised by his grandmother before venturing into property development and establishing Evergrande in 1996.

The company’s rapid growth was fueled by an economic boom in China driven by heavy borrowing. Evergrande expanded its business beyond property development into electric cars, food and drinks, and even acquired a majority stake in Guangzhou FC, which became China’s top football team.

However, the company’s business model came under scrutiny when Beijing introduced new rules in 2020 to control property debt. This led Evergrande to sell its properties at significant s to ensure a steady flow of cash. Despite these efforts, the company’s financial situation continued to deteriorate.

Evergrande’s stock market valuation shrank by 99% before its shares were delisted from the Hong Kong exchange in August 2025 after more than a decade and a half of trading. The collapse of the company has had far-reaching consequences, affecting millions of investors and homebuyers across China.

Hui’s legal troubles have drawn significant public attention, as the founder of China’s once-mighty Evergrande now faces the consequences of his company’s financial mismanagement. The case highlights the risks associated with excessive borrowing and the potential fallout from corporate fraud.

The legal proceedings against Hui are expected to continue, with the court’s final verdict likely to have a lasting impact on the broader business and legal landscape in China.