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Hui
Ka Yan, also known as Xu Jiayin, was detained in China in
September 2023 on suspicion of committing crimes. Shenzhen
Intermediate People’s Court said in a statement on WeChat that
Hui expressed remorse in court during a trial between Monday and
Tuesday. The court will deliver a judgment at a later date.
Hui also was accused of illegal lending, illegal use of funds
and disclosure of material information in violation of rules,
among other charges, the court said.
Those attending court included representatives of those involved
in past fundraising and members of the National People’s
Congress, the country’s legislative body.
Evergrande was the world’s most heavily indebted real estate
developer with more than $300 billion in liabilities when a Hong
Kong court handed down a liquidation order in 2024.
Founded in the mid-1990s by Hui, the company had over 90% of its
assets on the Chinese mainland, according to the 2024 ruling.
Shares in China Evergrande were removed from the Hong Kong Stock
Exchange in 2025.
Evergrande is among scores of developers that defaulted on debts
after Chinese regulators cracked down on excessive borrowing in
the property industry in 2020. Unable to obtain financing, the
companies' vast obligations to creditors and customers became
unsustainable.
The crackdown also tipped the property industry into crisis,
dragging down the world’s second-largest economy and rattling
financial systems in and outside China.
During the trial, China Evergrande Group faced a set of
allegations such as absorbing public deposits illegally,
fundraising fraud, corporate bribery and illegal lending.
Evergrande Real Estate Group, its mainland property arm, was
alleged to have committed fraudulent securities issuance.
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