The founder of Evergrande, the property giant at the centre of China's housing market slump, has been sentenced to life in prison and had all of his personal property confiscated.
Evergrande was once among China's largest developers, but it became a symbol of the sector's debt crisis after struggling to meet its obligations to creditors.
The company's difficulties left many homebuyers waiting for unfinished flats and rattled suppliers, investors and local governments. Many smaller investors exposed to the wider property slump also faced losses.
Chinese authorities have taken a range of steps to stabilise the property sector, which has historically accounted for a significant share of economic activity. Measures have included easing purchase restrictions and encouraging banks to support unfinished projects.
“The sentence sends a strong signal that accountability for the property crisis will reach the very top.”
“The sentence sends a strong signal that accountability for the property crisis will reach the very top,” said one China-focused economist.
Efforts to restructure the company's debts proved difficult, and its collapse weighed heavily on confidence across the wider industry.
Across China's property sector, buyers affected by stalled projects have pressed for construction to be completed and deposits protected.
Other large Chinese developers have also struggled with heavy debts in recent years, and several have entered restructuring talks with creditors. The slowdown has weighed on construction, steel and related industries.
Analysts say the case underlines Beijing's determination to address financial risk, though the housing market continues to face weak demand.
Attention is now likely to turn to how remaining assets are handled and whether creditors and buyers can recover more of what they are owed.
