Hui Ka Yan Pleads Guilty to Fraud and Bribery Charges

Hui Ka Yan, the founder of China Evergrande Group, pleaded guilty on Tuesday to multiple charges including fraud, bribery and illegal absorption of public deposits during a two-day trial at the Shenzhen Intermediate People's Court.

The court, which began the public hearing on Monday, stated that Hui, also known as Xu Jiayin, expressed remorse for his actions. Prosecutors accused him of offenses such as fundraising fraud, illegal loan issuance, fraudulent securities issuance and unlawful disclosure of material information. Evergrande Group and its mainland property arm, Evergrande Real Estate Group, faced separate allegations of similar violations, including corporate bribery and illegal lending. A verdict is expected at a later date, according to court officials.

Hui was detained in September 2023 on suspicion of criminal activity. The case represents a key development in the fallout from Evergrande's collapse, which has exacerbated China's property sector crisis. At its peak, the company carried liabilities exceeding $300 billion, making it the world's most indebted developer. Regulators in 2024 accused Evergrande's main onshore unit of inflating revenue by more than 82 billion...