Evergrande founder Xu Jiayin, 67, who was once China’s richest man, was sentenced to life in prison by a Chinese court on Thursday, marking a dramatic fall for the property tycoon, according to AFP.
Xu, also known as Hui Ka Yan in Cantonese, was found guilty of multiple offences, comprising fraud, bribery and embezzlement linked to his management of Evergrande Group, once China’s largest property developer before its 2021 default.
The Shenzhen Intermediate People’s Court has imposed a CNY 8.82 billion (USD 1.31 billion or ₹12,543.50 crore) fine on Xu Jiayin, while Hengda Real Estate, Evergrande Group’s mainland operating arm, was fined CNY 7 billion (around USD 1 billion or ₹9,955.50 crore) ), reported PTI.
State-run Xinhua reported that the penalties rank among the largest corporate fines handed down by a Chinese court in criminal cases.
The court found Xu guilty of multiple offences, including illegally accepting public deposits, fundraising fraud, unlawful lending, fraudulent securities issuance, failure to disclose material information and corporate bribery.
Xu was also convicted of misappropriating funds and embezzlement, while Hengda Real Estate was found guilty of fraudulent securities issuance.
The court ordered authorities to recover the defendants’ illegal proceeds and said any shortfall in recovery would have to be compensated through restitution. Moreover, 56 company personnel, including Xu’s two sons, were handed prison terms ranging from 22 months to 18 years. They were also ordered to pay fines or have their property confiscated.
Xu was born in 1958 into a poor family in rural Henan province, the same year Chinese leader Mao Zedong launched the “Great Leap Forward”, an industrialisation drive that resulted in widespread famine.
His mother died when he was just one year old. Recalling his childhood in a speech, Xu stated his diet during his school years was largely limited to sweet potatoes and steamed bread.
"The sheets I laid, the quilts I covered, and the clothes I wore were all covered with piles of patches," said Xu, adding, “At that time, my greatest wish was to go out of the countryside, find a job and be able to eat better food.”
After completing school in 1976, towards the end of the decade-long Cultural Revolution, Xu struggled to secure employment. He later studied metallurgy after colleges reopened and was assigned to work at a state-owned steel plant.
In 1992, Xu moved to Shenzhen, which had emerged as a major centre of China’s reform and opening-up drive. He subsequently entered the property business and founded Evergrande in 1996.
The company pursued large-scale residential development, constructing apartments across China as the country’s property market and wealth expanded rapidly.
Evergrande went public in Hong Kong in 2009, raising $729 million through its initial public offering. The listing made it China’s largest private property developer at the time and propelled Xu to become the richest man in mainland China.
Xu Jiayin’s wealth peaked at $45.3 billion ( ₹4,33,540.7 crore) in 2017, making him the richest person in Asia at the time, according to Forbes. By 2023, his fortune had plunged to an estimated $3 billion ( ₹28,713.08 crore). The court in Shenzhen on Thursday ordered the confiscation of all his personal assets.
