Evergrande founder Hui Ka Yan sentenced to life in prison
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Hui Ka Yan, founder of China Evergrande, was sentenced to life in prison by a Shenzhen court on August 20, 2026. The property sector's six-year collapse continues to drag on China's economy, with millions of unfinished homes and stalled price recoveries. China's trade surplus has more than doubled since 2019, escalating tensions with the EU and US.
Key Facts
- Hui Ka Yan, founder of China Evergrande, was sentenced to life in prison by the Shenzhen Intermediate People's Court on August 20, 2026.
- China's economy grew 4.3% in the three months to June from the same quarter last year, the slowest in more than three years.
- Second-hand home prices in smaller, inland cities are down almost a quarter from 2020 levels.
- China's trade surplus has more than doubled since 2019, escalating trade tensions with the European Union and the United States.
- Evergrande defaulted in 2021 and began liquidation in 2024.
The Sentencing
Hui Ka Yan, once Asia's richest person and founder of China Evergrande, was convicted of crimes ranging from misuse of funds to bribery. The Shenzhen Intermediate People's Court sentenced him to life in prison on August 20, 2026. Many angry homeowners and creditors asked on Chinese social media why Hui was not given the death penalty.
Property Market Collapse
Six years after China's financial regulators cracked down on the heavily leveraged property sector, millions of partially built properties sit derelict across China. A recovery in new-home prices in the biggest cities, like Beijing and Shanghai, has stalled, and land sales continue to plunge. Declines are accelerating in property sales and construction, and in smaller, inland cities, second-hand home prices are down almost a quarter from 2020 levels. Sam Radwan, chief executive of Enhance International, said the problem is systemic: 'You have more homes than households - second homes were used as an investment by over a third of the population.'
Economic and Trade Impact
China's economy grew 4.3% in the three months to June from the same quarter last year, the slowest in more than three years. With the one-time engine of domestic demand in reverse, China is increasingly relying on exports for growth. The more than doubling of China's trade surplus since 2019 has escalated trade tensions with the European Union and the United States. Concerns about a 'China Shock 2.0' have grown as exports displace local industries for trading partners, including in the Global South.
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Evergrande founder Hui Ka Yan sentenced to life in prison
