"China's 'King of Debt' Causes Shock, Admits Guilt in Deceiving Investors"
China’s “King of Debt” Causes Shock, Admits Guilt in Deceiving Investors
Jakarta, CNBC Indonesia - The founder of China’s property giant Evergrande, which is currently reeling from a crisis, Hui Ka Yan has officially pleaded guilty to several serious charges, including asset misappropriation and corporate bribery. This shocking admission was made in an official statement issued by the local court following a lengthy trial process.
Hui Ka Yan reportedly expressed deep remorse during the public trial held on 13 and 14 April in Shenzhen. According to reports from Chinese state media, the entrepreneur, once a symbol of Asian wealth, appeared resigned as he faced the charges levelled against him.
“Hui expressed remorse during the public trial on 13 and 14 April in Shenzhen,” stated Chinese state media in its report, quoted from BBC, on Friday (17/4/2026).
The court stated that it had heard all testimonies and defences from the defendant during the trial. However, the legal authorities emphasised that the court would announce the final verdict in the case involving Hui Ka Yan on a date to be determined later.
“The court said it will announce the verdict in the case on a forthcoming date,” revealed the official court statement.
This guilty plea marks a crucial moment in the downfall of the Evergrande empire, which has massively shaken China’s property sector. The impact of the company’s collapse has left international investors and domestic banks in the Bamboo Curtain nation in dire straits.
Evergrande was previously China’s largest real estate company, with a market capitalisation exceeding US$50 billion (Rp859.3 trillion). However, that glory faded after the company became trapped in a debt crisis triggered by reckless borrowing in 2021, ultimately exposing the rot in its business practices.
The trial uncovered shocking facts regarding the misuse of consumer funds. The company was found to have taken millions of dollars in advance payments from prospective homebuyers, which should have been used for physical construction, but were instead misappropriated.
“The court heard that the company had taken millions of dollars in pre-sale funds from prospective homebuyers that were not used for construction. Instead, the funds were diverted to new projects, resulting in hundreds of properties remaining unfinished across China,” stated the trial testimony.
Hui Ka Yan, also known as Xu Jiayin, began his career from humble rural origins in China and was raised by his grandmother. He later ventured into property development, founding Evergrande in 1996 and dominating the market.
The destruction of Evergrande is often cited as the main trigger for the continuous decline in China’s property market since 2021. At the time of its collapse, Evergrande had around 1,300 ongoing projects in 280 cities across China.
The company then earned the title of the world’s most indebted property developer, having built its business empire on an extraordinary pile of debt. The total liabilities of the company reached a staggering figure that shook economic stability.
“Evergrande is known as the property developer with the largest debt in the world after much of its empire was built on loans amounting to US$300 billion (Rp5,156.1 trillion),” stated the report.
This giant business began to falter when the Beijing government introduced new rules in 2020 to control the already sky-high debt in the property sector. This forced Evergrande to sell its properties at massive discounts to ensure cash flow, but these efforts were unable to save the company.
In March 2024, Hui Ka Yan himself was fined US$6.5 million (Rp111.7 billion) and banned for life from activities in China’s capital markets. This punishment was imposed after his company was found to have manipulated financial reports by inflating revenues by up to US$78 billion (Rp1,340.5 trillion).
Hui once held the throne as Asia’s richest person, with an estimated wealth of US$42.5 billion (Rp730.4 trillion) in 2017 according to Forbes’ list. His business empire even extended far beyond property, from electric vehicle manufacturing to ownership of the Guangzhou FC football club.
However, that glory has now ended tragically after Evergrande’s market valuation plummeted by 99%. The peak came when the company’s shares were officially delisted from the Hong Kong stock exchange in August 2025 after more than 15 years of listing.