Evergrande Empire Collapses: Founder Xu Jiayin Sentenced to Life Imprisonment, All Personal Assets Confiscated, Total Fines Reach 15.8 Billion RMB

On the 20th, the Intermediate People's Court of Shenzhen, Guangdong Province, China, delivered a first-instance verdict against Evergrande Group Limited, Evergrande Real Estate Group Limited, and its founder Xu Jiayin, along with other involved personnel.

The court sentenced Xu Jiayin to life imprisonment, deprived him of political rights for life, and ordered the confiscation of all his personal property. Evergrande Group was fined 8.82 billion RMB, and Evergrande Real Estate was fined 7 billion RMB. According to Xinhua News Agency, the total fines amounted to 15.8 billion RMB.

Xu Jiayin was the actual controller of the Evergrande Group, overseeing the group’s overall operations and exercising substantial management and control over multiple companies, including Evergrande Real Estate, Evergrande Wealth, and Evergrande Nanchang. Between 2016 and 2021, Evergrande Group, Evergrande Real Estate, and Xu Jiayin engaged in continuous and large-scale financial fraud, overstating assets and concealing liabilities, involving crimes such as illegal absorption of public deposits, fundraising fraud, and the unauthorized disclosure of material information.

The verdict stated that Evergrande Group and Xu Jiayin also obtained control over financial institutions through bribery, illegally siphoning off credit and insurance funds for group use, constituting corporate bribery, illegal loan issuance, and illegal use of funds. Xu Jiayin, leveraging his position as chairman of Evergrande Real Estate, led the financial fraud and embezzled company assets under the guise of dividends.

The court determined that Evergrande Group and Xu Jiayin were guilty of illegal absorption of public deposits, fundraising fraud, illegal loan issuance, fraudulent securities issuance, unauthorized disclosure of material information, and corporate bribery. Xu Jiayin was additionally convicted of illegal use of funds and occupational embezzlement. Evergrande Real Estate was found guilty of fraudulent securities issuance.

The court emphasized that the defendants’ criminal amounts were exceptionally large, the circumstances particularly egregious, and the economic losses substantial, warranting severe punishment. In accordance with laws and judicial interpretations, compensation to investors shall take precedence over the execution of fines and asset confiscation.

On the same day, the Shenzhen Intermediate People's Court and Nanshan District People's Court also delivered verdicts in related Evergrande cases, sentencing 56 individuals, including Zhen Litao, Ke Peng, Xu Tenghe, Xu Dongjian, and Du Liang, to corresponding penalties. Some deputies to the National People's Congress, members of the Chinese People's Political Consultative Conference, family members of the defendants, and representatives of affected investors attended the trial as observers.