The Shenzhen Intermediate People's Court sentenced Evergrande founder Hui Ka Yan to life imprisonment. Separately, Shanghai eased its housing policies by lowering the deposit for second homes to 15 per cent.
The Shenzhen Intermediate People's Court sentenced Evergrande founder Hui Ka Yan, 67, to life imprisonment for eight charges including fundraising fraud, illegal deposit-taking, fraudulent share issuance and bribery. The court ordered him stripped of his political rights for life and had all his personal property confiscated. These strict legal actions represent a significant chapter in the ongoing efforts to regulate corporate governance across major developers.[1]
The court found the group had engaged in sustained and large-scale financial fraud between 2016 and 2021, and fined China Evergrande Group 8.82 billion yuan and Hengda Real Estate 7 billion yuan. Alongside Hui, more than 50 executives and associates received sentences ranging from 22 months to 18 years. Evergrande's total group liabilities stood above 300 billion dollars when the case opened, marking it as a notably egregious instance of corporate malfeasance.[1]
While judicial punishments proceed, Shanghai lowered the minimum second-home deposit from 20 per cent to 15 per cent, matching first-time buyers, and will let buyers draw housing-provident-fund cash toward the deposit on all new flats. Cash incentives for newly built homes beyond the Outer Ring Road are capped at 80,000 yuan, 11,897 dollars. The package follows Beijing's easing two weeks earlier, aiming to maintain stability and encourage purchases.[2]
