Evergrande Fraud Case Opens in Shenzhen, Xu Jiayin Pleads Guilty, Sentencing to be Scheduled

Central News Agency reported that the Evergrande Group's cases involving illegal absorption of public deposits, fundraising fraud, and fraudulent issuance of securities were heard in Shenzhen from April 13 to 14. Defendant Xu Jiayin, founder of Evergrande Group, pleaded guilty in court, and the court will announce the sentencing at a later date. Xinhua News Agency reported on April 14 that from April 13 to 14, the Shenzhen Intermediate People's Court of Guangdong Province publicly heard the case against defendant unit Evergrande Group Co., Ltd. for illegal absorption of public deposits, fundraising fraud, illegal issuance of loans, fraudulent issuance of securities, illegal disclosure of important information, and unit bribery. The court also heard the case against defendant unit Evergrande Real Estate Group Co., Ltd. for fraudulent issuance of securities, and against defendant Xu Jiayin for illegal absorption of public deposits, fundraising fraud, illegal issuance of loans, illegal use of funds, fraudulent issuance of securities, illegal disclosure of important information, embezzlement, and unit bribery. The report stated that during the trial, the court presided over the investigation and debate between the prosecution and defense regarding the alleged facts. The defendant units and Xu Jiayin made their final statements. Xu Jiayin pleaded guilty in court. The court will announce the sentencing at a later date. The report also stated that some National People's Congress deputies, CPPCC members, relatives of the defendants, and representatives of investors attended the trial. China Evergrande Group announced in 2023 that its executive director and chairman of the board, Xu Jiayin, had been subjected to mandatory measures in accordance with the law due to suspected illegal crimes. In early 2024, the Evergrande Group was issued a compulsory winding-up order by the Hong Kong High Court.