China\u2019s \u201cKing of Debt\u201d Causes Shock, Admits Guilt in Deceiving\nInvestors<\/p>\n
Jakarta, CNBC Indonesia - The founder of China\u2019s property giant\nEvergrande, which is currently reeling from a crisis, Hui Ka Yan has\nofficially pleaded guilty to several serious charges, including asset\nmisappropriation and corporate bribery. This shocking admission was made\nin an official statement issued by the local court following a lengthy\ntrial process.<\/p>\n
Hui Ka Yan reportedly expressed deep remorse during the public trial\nheld on 13 and 14 April in Shenzhen. According to reports from Chinese\nstate media, the entrepreneur, once a symbol of Asian wealth, appeared\nresigned as he faced the charges levelled against him.<\/p>\n
\u201cHui expressed remorse during the public trial on 13 and 14 April in\nShenzhen,\u201d stated Chinese state media in its report, quoted from BBC, on\nFriday (17\/4\/2026).<\/p>\n
The court stated that it had heard all testimonies and defences from\nthe defendant during the trial. However, the legal authorities\nemphasised that the court would announce the final verdict in the case\ninvolving Hui Ka Yan on a date to be determined later.<\/p>\n
\u201cThe court said it will announce the verdict in the case on a\nforthcoming date,\u201d revealed the official court statement.<\/p>\n
This guilty plea marks a crucial moment in the downfall of the\nEvergrande empire, which has massively shaken China\u2019s property sector.\nThe impact of the company\u2019s collapse has left international investors\nand domestic banks in the Bamboo Curtain nation in dire straits.<\/p>\n
Evergrande was previously China\u2019s largest real estate company, with a\nmarket capitalisation exceeding US$50 billion (Rp859.3 trillion).\nHowever, that glory faded after the company became trapped in a debt\ncrisis triggered by reckless borrowing in 2021, ultimately exposing the\nrot in its business practices.<\/p>\n
The trial uncovered shocking facts regarding the misuse of consumer\nfunds. The company was found to have taken millions of dollars in\nadvance payments from prospective homebuyers, which should have been\nused for physical construction, but were instead misappropriated.<\/p>\n
\u201cThe court heard that the company had taken millions of dollars in\npre-sale funds from prospective homebuyers that were not used for\nconstruction. Instead, the funds were diverted to new projects,\nresulting in hundreds of properties remaining unfinished across China,\u201d\nstated the trial testimony.<\/p>\n
Hui Ka Yan, also known as Xu Jiayin, began his career from humble\nrural origins in China and was raised by his grandmother. He later\nventured into property development, founding Evergrande in 1996 and\ndominating the market.<\/p>\n
The destruction of Evergrande is often cited as the main trigger for\nthe continuous decline in China\u2019s property market since 2021. At the\ntime of its collapse, Evergrande had around 1,300 ongoing projects in\n280 cities across China.<\/p>\n
The company then earned the title of the world\u2019s most indebted\nproperty developer, having built its business empire on an extraordinary\npile of debt. The total liabilities of the company reached a staggering\nfigure that shook economic stability.<\/p>\n
\u201cEvergrande is known as the property developer with the largest debt\nin the world after much of its empire was built on loans amounting to\nUS$300 billion (Rp5,156.1 trillion),\u201d stated the report.<\/p>\n
This giant business began to falter when the Beijing government\nintroduced new rules in 2020 to control the already sky-high debt in the\nproperty sector. This forced Evergrande to sell its properties at\nmassive discounts to ensure cash flow, but these efforts were unable to\nsave the company.<\/p>\n
In March 2024, Hui Ka Yan himself was fined US$6.5 million (Rp111.7\nbillion) and banned for life from activities in China\u2019s capital markets.\nThis punishment was imposed after his company was found to have\nmanipulated financial reports by inflating revenues by up to US$78\nbillion (Rp1,340.5 trillion).<\/p>\n
Hui once held the throne as Asia\u2019s richest person, with an estimated\nwealth of US$42.5 billion (Rp730.4 trillion) in 2017 according to\nForbes\u2019 list. His business empire even extended far beyond property,\nfrom electric vehicle manufacturing to ownership of the Guangzhou FC\nfootball club.<\/p>\n
However, that glory has now ended tragically after Evergrande\u2019s\nmarket valuation plummeted by 99%. The peak came when the company\u2019s\nshares were officially delisted from the Hong Kong stock exchange in\nAugust 2025 after more than 15 years of listing.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/chinas-king-of-debt-causes-shock-admits-guilt-in-deceiving-investors-1776441058", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }