The Shenzhen Intermediate People’s Court convicted Xu Jiayin of illegally absorbing public deposits, committing fundraising fraud, illegally issuing loans, fraudulently issuing securities, unlawfully disclosing important information and engaging in corporate bribery. Xu faced additional convictions for the illegal use of funds and embezzlement while Evergrande Real Estate Group was found guilty of fraudulent issuance of securities, Arab Times reported on August 20, 2026, citing Xinhua. As the actual controller of Evergrande Group, Xu held overall responsibility for the company’s operations across real estate development, property management, finance and other sectors.
In delivering the sentence, the court deprived Xu of his political rights for life, ordered the confiscation of all his personal assets and directed the continued recovery of illegal gains with restitution for any shortfall. It fined Evergrande Group 8.82 billion yuan, or about $1.3 billion, and imposed a 7 billion yuan penalty on its real estate unit. The court determined that the offences had seriously disrupted the socialist market economy, infringed upon public and private property rights and undermined the integrity of public officials, justifying severe punishment given the exceptionally large sums and heavy losses involved.
This outcome on August 20, 2026 caps a legal process that began with Xu’s two-day trial in April during which he pleaded guilty to all eight charges and expressed remorse, according to Reuters. A lawyer representing Evergrande investors told the news agency that the chances were extremely high that Xu would receive a life sentence given the amount of money involved, the number of victims and the associated financial risks and social impact. Xu had remained under police control since his detention in 2023 ahead of the proceedings.
Evergrande Group defaulted on most of its $300 billion in liabilities in 2021, an event that exemplified and accelerated a wider crisis in China’s property sector, Reuters reported. The developer’s collapse has had lasting effects on economic growth, household wealth and confidence in the real estate market across the country. Authorities have since pursued a series of measures to stabilise the sector and address similar risks in other firms.
China’s securities regulator had already fined Xu the equivalent of $6.6 million and barred him from the securities industry for life in 2024 after concluding that Evergrande inflated its earnings through fraudulent practices, The Guardian stated. Those administrative sanctions preceded the criminal charges that culminated in Thursday’s verdict. The combination of regulatory and judicial actions reflects Beijing’s efforts to hold corporate leaders accountable for financial misconduct.
The fines and penalties against both Xu and the companies underscore the authorities’ stance on economic crimes of this magnitude. Additional details on the exact amounts siphoned or the number of affected investors were not disclosed in the immediate court announcement. Further reporting on the long-term implications for China’s real estate industry is expected in coming weeks.
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