The downfall of Evergrande has reached a critical turning point as its founder Hui Ka Yan, also known as Xu Jiayin, pleaded guilty to multiple charges including embezzlement and corporate bribery. During a public hearing in Shenzhen, Hui expressed remorse, according to state media, as the court reviews one of the most high-profile corporate cases in modern China. A final verdict is expected at a later date, but the admission of guilt marks a significant moment in a crisis that has shaken investor confidence and destabilized the country’s real estate sector.
Once a symbol of China’s rapid economic ascent, Evergrande grew into the world’s most indebted property developer, fueled by aggressive borrowing and expansion. At its peak, the company was valued at more than $50 billion and managed around 1,300 projects across hundreds of cities. However, the court revealed that billions in pre-sale funds from homebuyers were diverted away from construction, leaving behind a trail of unfinished properties and eroding trust in the housing market.
