A Chinese court has sentenced Xu Jiayin, founder of the embattled property giant Evergrande Group, to life in prison after convicting him of large-scale financial fraud. The Shenzhen Intermediate People's Court in Guangdong province also imposed fines totaling 15.82 billion yuan ($2.4 billion) on Evergrande and its real estate affiliate.
The court revoked Xu’s political rights for life and confiscated all his personal property, according to an official statement posted on the court’s WeChat account. The sentencing follows a high-profile default by Evergrande in 2021, which triggered a broader crisis in China’s real estate sector.
Core charges and penalties
Xu was convicted on multiple counts, including financial fraud, misuse of funds, and illegally taking public deposits. The court also sentenced several other senior Evergrande executives to prison terms ranging from 12 to 18 years on related charges. In April, Xu pleaded guilty to charges including embezzlement, corporate bribery, and fraud, which the court described as part of a systemic effort to inflate the company’s assets and conceal its liabilities.
Evergrande Group was fined 8.82 billion yuan ($1.31 billion), while its real estate unit, Evergrande Real Estate Group, was fined 7 billion yuan ($1.04 billion). The court stated that Xu abused his position to orchestrate the fraud and misappropriate company assets.
Background: Evergrande’s rise and fall
Evergrande, founded in 1996, grew into China’s largest real estate developer under Xu’s leadership, with a peak stock market valuation exceeding $50 billion. At one point, Xu was estimated to be Asia’s richest person. The company’s rapid expansion was fueled by heavy borrowing, a strategy that became unsustainable after Chinese authorities introduced debt-control measures in 2020 to curb excessive speculation in the property market.
The crackdown forced Evergrande to sell properties at steep discounts to meet its obligations, but the company ultimately defaulted on its debts in 2021, leaving it with liabilities exceeding $300 billion. The collapse contributed to a broader downturn in China’s property sector, which has since weighed on the country’s economic growth.
Financial misconduct details
According to court documents, Evergrande misused pre-sale funds from homebuyers, channeling the money into new developments rather than construction. This practice left hundreds of projects unfinished and contributed to the company’s insolvency. The court also found that Evergrande had manipulated financial data by prematurely booking revenue from property sales before completion and delivery.
In March 2024, Xu was separately fined $6.5 million and banned for life from China’s capital markets for overstating Evergrande’s revenue by $78 billion. The company’s stock valuation plummeted by 99% before its shares were delisted from the Hong Kong Stock Exchange in August 2025 after 15 years of trading.
Broader economic impact
The fallout from Evergrande’s collapse has been described as a turning point for China’s property market, which had long relied on real estate as a key driver of growth. The sector’s downturn has affected investors, domestic banks, and local governments, many of which had relied on land sales for revenue. Analysts note that the crisis has exposed vulnerabilities in China’s debt-fueled growth model and raised questions about the sustainability of its property-driven economy.
The court’s ruling marks a significant milestone in the resolution of one of China’s most high-profile corporate failures, though the long-term economic repercussions of Evergrande’s collapse continue to unfold.