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Hui Ka Yan: the Evergrande tycoon faces his downfall

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Hui Ka Yan: the Evergrande tycoon faces his downfall

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Evergrande’s homepage is frozen in time at just over a year ago. Back then its founder, Hui Ka Yan, still seemed hopeful he could save the world’s most indebted developer. “All Evergrande employees must . . . never give up,” the charismatic tycoon tells executives in one video, exhorting them to finish thousands of apartments left incomplete after the company officially defaulted on its $300bn debt in 2021.

But the brave words could not avert disaster. This week a Hong Kong judge declared “enough is enough”. Evergrande, whose collapse helped spark a property crisis that has spurred a slowdown in the world’s second-largest economy, should be liquidated. Hui was not able to react. The entrepreneur, named Xu Jiayin in Mandarin, disappeared in September and is being held somewhere in China on suspicion of involvement in “illegal crimes”.

But the ruling and his detention are an ignominious end to the rise of a former steelworker who became one of China’s highest-rollers during the boom years. In less than three decades, Hui created one of the country’s largest property companies while dabbling in football, electric vehicles and theme parks. He used his fabulous wealth to ingratiate himself with elites from Beijing’s “red aristocracy” to the British royal family.

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“Of all the developers, I have to say he was one of the more aggressive ones,” says Desmond Shum, author of Red Roulette, a book about elite Chinese business and politics, who knew Hui in his heyday. “So when the market turns, that these people are the first ones to go on the chopping block, it’s not surprising.”

Like many of his generation, Hui’s personal life mirrored China’s rapid changes after opening its economy in the late 1970s. Born into poverty in Henan province, he was raised by his grandmother. After working in the steel industry in the 1980s, he launched Evergrande in 1996 just in time to catch a housing boom driven by China’s new middle class.

After expanding into 280 cities, according to Evergrande’s website, Hui invested in theme parks and poured funds into a government “shantytown” redevelopment programme. This left him heavily exposed to China’s smaller cities, where experts warned the market was heading into oversupply. 

He and other developers often sold houses before construction, using the funds to acquire land while banks offered mortgages on the unbuilt properties. Developers and local governments became addicted to the debt-fuelled model. “That is the problem with a bubble. Once you’re in, you’re in — it’s almost impossible to get out,” said Zhu Ning, professor at the Shanghai Advanced Institute of Finance and author of China’s Guaranteed Bubble.

Hui came to embody a brash new breed of Chinese tycoons, sporting a gold Hermès belt buckle, buying mansions in Sydney, Hong Kong and London, and flying around in private jets. In 2015, he bought a 60-metre mega yacht and celebrated the victory of his football team, Guangzhou Evergrande, in Asia’s Champions League, with co-owner internet billionaire Jack Ma and Britain’s Prince Andrew. In 2017, he topped the Forbes China rich list, with a total net worth of nearly $43bn.

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Those who knew him say he had an easy-going, bright personality, perfect for high-level networking. According to one banker: “Hui is a person with high EQ . . . [otherwise] how was he able to persuade some big Hong Kong financiers to invest in him and Evergrande?”

Hui’s downfall began in 2020 when President Xi Jinping’s government introduced a new policy limiting leverage as it sought to redress economic imbalances. Evergrande’s aggressive model meant that this translated quickly into a liquidity crisis. Its offshore bond restructuring was in effect blocked last year after the authorities found irregularities in its mainland arm, leading to the liquidation.

Few expect, however, that the liquidation order will extend to the mainland. Beijing would not surrender control of the potentially politically explosive process of resolving Evergrande and other developers’ debts — and finishing their vast number of incomplete apartments, analysts said. 

Hui was not available for comment and Evergrande did not immediately respond.

Many now believe Hui could follow other tycoons who have fallen foul of Beijing, such as Xiao Jianhua, a politically connected financier who was snatched from the Four Seasons in Hong Kong by Chinese agents in 2017 and sentenced to 13 years in jail. “Even if someone wanted to contact him [Hui], they might not be able to do so,” Hong Kong tycoon Joseph Lau, who used to play cards with him, told reporters in November.

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His fall marks the “ending of an era”, says Shum. “Many Chinese business people over the last few decades were maximum risk-takers because the economy was on a one-way upward trend . . . So when the downturn comes during the Xi era, people are completely unprepared for it.”

Hui’s legacy promises to be mixed at best. On Beijing’s outskirts, Central Mansion is a former Evergrande housing project “rescued” by the state-owned China Railway Construction. After a long idle period, six of its 15 buildings were finished this month, an agent said, while the rest are set for the end of 2024.

One customer tells the Financial Times she is concerned about her investment after the liquidation — the compound will still be managed by an affiliate of Evergrande Property Services. But the realtor reassures the FT that “there’s nothing to be worried about” — Evergrande no longer has any real influence. “After all boss Xu is still behind bars,” he says.

With additional reporting by Cheng Leng in Hong Kong, Ryan McMorrow in Beijing and Sun Yu in New York

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Iran and the US lean into gunboat diplomacy as nuclear talks hang in balance

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Iran and the US lean into gunboat diplomacy as nuclear talks hang in balance

DUBAI, United Arab Emirates (AP) — Iran and the United States leaned into gunboat diplomacy Thursday as nuclear talks between the nations hung in the balance, with Tehran holding drills with Russia and the Americans bringing another aircraft carrier closer to the Mideast.

The Iranian drill and the arrival of the USS Gerald R. Ford aircraft carrier near the mouth of the Mediterranean Sea underscore the tensions between the nations. Iran earlier this week also launched a drill that involved live-fire in the Strait of Hormuz, the narrow opening of the Persian Gulf through which a fifth of the world’s traded oil passes.

The movements of additional American warships and airplanes don’t guarantee a U.S. strike on Iran — but it does give President Donald Trump the ability to carry out one should he choose to do so. He’s so far held off on striking Iran after setting red lines over the killing of peaceful protesters and Tehran holding mass executions, while reengaging Tehran in nuclear talks earlier disrupted by the Iran-Israel war in June.

“Should Iran decide not to make a Deal, it may be necessary for the United States to use Diego Garcia, and the Airfield located in Fairford, in order to eradicate a potential attack by a highly unstable and dangerous Regime,” Trump wrote on his Truth Social website, seeking to pressure the United Kingdom over its plans to settle the future of the Chagos Islands with Mauritius.

Meanwhile, Iran struggles with unrest at home following its crackdown on protests, with mourners now holding ceremonies honoring their dead 40 days after their killing by security forces. Some of the gatherings have included anti-government cries, despite threats from authorities.

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Iran holds drill with Russia

The drill Thursday saw Iranian forces and Russian sailors conduct operations in the Gulf of Oman and the Indian Ocean, Iran’s state-run IRNA news agency reported. The drill will be aimed at “upgrading operational coordination as well as exchange of military experiences,” IRNA added.

China had joined the “Security Belt” drill in previous years, but there was no acknowledgment it participated in this round. In recent days, a vessel that appeared to be a Steregushchiy-class Russian corvette had been seen at a military port in the Iranian city of Bandar Abbas.

Iran also issued a rocket-fire warning to pilots in the region, suggesting they planned to launch anti-ship missiles in the exercise.

Meanwhile, tracking data showed the Ford off the coast of Morocco in the Atlantic Ocean midday Wednesday, meaning the carrier could transit through Gibraltar and potentially station in the eastern Mediterranean with its supporting guided-missile destroyers.

Having the carrier there could allow American forces to have extra aircraft and anti-missile power to potentially protect Israel and Jordan should a conflict break out with Iran. The U.S. similarly placed warships there during the Israel-Hamas war in the Gaza Strip to protect against Iranian fire.

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Anti-government chants made at mourning ceremonies

Mourning ceremonies for those killed by security forces in the protests last month also have increased. Iranians traditionally mark the death of a loved one 40 days after the loss. Both witnesses and social media videos showed memorials taking place at Tehran’s massive Behesht-e Zahra cemetery. Some memorials included people chanting against Iran’s theocracy while singing nationalistic songs.

The demonstrations began Dec. 28 at Tehran’s historic Grand Bazaar, initially over the collapse of Iran’s currency, the rial, then spread across the country. Tensions exploded on Jan. 8, with demonstrations called for by Iran’s exiled crown prince, Reza Pahlavi.

Iran’s government has offered only one death toll for the violence, with 3,117 people killed. The U.S.-based Human Rights Activists News Agency, which has been accurate in previous rounds of unrest in Iran, puts the death toll at over 7,000 killed, with many more feared dead.

___

Associated Press writer Nasser Karimi in Tehran, Iran, contributed to this report.

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Zuckerberg grilled about Meta’s strategy to target ‘teens’ and ‘tweens’

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Zuckerberg grilled about Meta’s strategy to target ‘teens’ and ‘tweens’

Meta CEO Mark Zuckerberg arrives at the Los Angeles Superior Court ahead of the social media trial tasked to determine whether social media giants deliberately designed their platforms to be addictive to children on Feb. 18, 2026. Zuckerberg is scheduled to testify Wednesday.

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Meta CEO Mark Zuckerberg was clearly getting testy.

“That’s not what I’m saying at all,” said the tech billionaire. “I think you’re misunderstanding what I’m saying,” Zuckerberg responded. “You’re mischaracterizing what I’m saying,” he shot back.

The executive was testifying on Wednesday before a jury in Los Angeles in a marquee social media trial accusing Meta of deliberately designing features of Instagram to addict children, and the legal team for the family suing was intent on showing that Zuckerberg’s fingerprints were all over the company’s big decisions.

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Mark Lanier, a Texas trial lawyer and pastor with a folksy courtroom demeanor, directed Zuckerberg’s attention to a 2020 internal Meta document showing that 11-year-olds were four times as likely to keep coming back to Facebook, compared to older users. Instagram’s minimum age for signing up is 13.

“People who join Facebook at 11 years old? Lanier asked Zuckerberg. “I thought y’all didn’t have any of those?”

Lanier then went over Meta internal documents highlighting goals to increase the time 10-year-olds spend on Instagram.

“I don’t remember the context of this email from more than ten years ago,” Zuckerberg said. “I think the way we should build things is to build useful services for people to connect with their family and friends and learn about the world.”

One 2018 internal Meta document stated “If we wanna win big with teens, we must bring them in as tweens,” Lanier pointed out, saying that undercut Meta’s own policies.

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The legal team representing the plaintiff, a 20-year-old California woman known in court documents as “Kaley,” attempted to demonstrate that the top-down goal of Meta has always been to encourage users to get on their platforms as young as possible, and once there, to figure out ways to keep them around. Often features like “beauty filters,” made the app more alluring, Lanier argued.

When the company hired experts who affirmed that such appearance-enhancing filters contributed to body-image issues among young girls, Zuckerberg would not dispense with the filters tools, calling getting rid of them was “paternalistic.”

Under questioning in court, the billionaire Facebook founder responded: “What we allowed was letting people use those filters if they wanted but deciding not to recommend them to people,” he said. “So that was the balance we came to to let people express themselves the way they want.”

Kaley, who’s also identified as KGM in court documents, often used these filters, which her lawsuit says contributed to body dysmorphia and other mental health issues.

Had Zuckerberg looked at Kaley’s Instagram posts before the trial, Lanier asked? His staff had shown him some, he responded.

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Files are brought inside the Los Angeles Superior Court on Feb 18, 2026 as part of a major trial involving Meta and Google over whether their products harm young people.

Files are brought inside the Los Angeles Superior Court on Feb 18, 2026 as part of a major trial involving Meta and Google over whether their products harm young people.

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That’s when Lanier, who is known for orchestrating spectacles at trial, had five lawyers unspool a roughly 20-foot collage of hundreds of photos that Kaley posted to Instagram. Lanier implored Zuckerberg to dwell on the posts. Other observers in the room, including the media, were not able to see the photos.

When it was time for Meta’s lawyer to ask Zuckerberg questions, he emphasized that the company does not have an incentive for people to have harmful experiences on its services.

“From a business perspective, people think if we maximize the amount of attention people spend, that that’s good for us,” Zuckerberg said. “But if people feel like they’re not having a good experience, why would they keep using the product?”

Keeping users safe, especially teen users, has always been a priority, Zuckerberg said.

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“Questions about well-being I consider part of this for sure,” he said. “If you build a community and people don’t feel safe, that’s not sustainable and eventually people go and join another community.”

1,600 other plaintiffs

The appearance of Zuckerberg, the star witness of the trial, came in the second week of what’s expected to be a six-week proceeding. Other tech executives, social media specialists, addiction experts and others have also testified.

Kaley, the plaintiff, is expected to deliver the most emotional testimony later in the trial. Her lawsuit claims she began using social media at age 6, including YouTube, Instagram, TikTok and Snap. After becoming hooked on the platforms, she said her body image issues, depression and suicidal thoughts worsened. The suit points to features like beauty filters, infinite scroll and auto-play as being tantamount to a “digital casino.” Evidence of the harms of these features were concealed from the public, the lawsuit says.

Julianna Arnold, whose daughter died from fentanyl she bought from someone on Instagram, talks about watching Mark Zuckerberg testify outside the Los Angeles Superior Court on Feb. 18, 2026.

Julianna Arnold, whose daughter died from fentanyl she bought from someone on Instagram, talks about watching Mark Zuckerberg testify outside the Los Angeles Superior Court on Feb. 18, 2026.

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In response, Meta and Google, which owns YouTube, have said the accusations over-simplify the complexity of adolescent mental health issues. The companies argue social media use does not directly cause young people to be mentally unwell, so they should not be held legally liable for a user’s mental health struggles.

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Kaley’s legal team called expert witnesses who described multiple studies linking regular social media use with worsening depression, anxiety and body image issues.

The jury will determine to what degree social media platforms should be held legally culpable for plaintiff Kaley’s struggles. The trial is a bellwether case tied to 1,600 similar suits filed by families and school districts. How the jury decides is expected to influence settlement talks in all those pending cases.

While debates about social media addiction have raged for decades, it has taken until now for a major trial on the issue to unfold largely due to a federal legal shield that has protected Silicon Valley. A law known as Section 230 of the 1996 Communications Decency Act has allowed tech companies to fend off lawsuits over what users post to their sites. Social media firms have also won legal battles, including a key Supreme Court case, that have found how companies curate content on platforms is a type of protected free speech.

Despite these protections, the plaintiff’s lawyers in the Los Angeles case found a way to legally attack tech giants: by treating social media apps as unsafe products, viewing Instagram, YouTube and other services as defective under product liability law. The argument is that tech companies deliberately designed social media sites as harmful and dismissed internal warnings that the services could be problematic for teenagers.

The jury will ultimately have to assess Zuckerberg’s credibility, which was under attack on Wednesday.

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Lanier, Kaley’s lawyer, brought up an internal document showing how Meta communications staffers have pushed Zuckerberg to portray himself as more “human” and “relatable,” and “empathetic, and less “fake,” and “corporate,” and “cheesy.”

When questioned about his performance in various other public settings, whether in courtrooms or before Congress, Zuckerberg showed some humility.

He said: “I think I’m known to actually be pretty bad at this,” which drew some laughter from the courtroom.

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What Trump’s Latest East Wing Designs Show

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What Trump’s Latest East Wing Designs Show

President Trump’s latest plans for the East Wing ballroom reveal new details and a few notable changes from earlier designs.

The White House submitted the final plans to the National Capital Planning Commission, ahead of a March 5 meeting, where a board controlled by Trump allies is expected to approve the project.

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One pediment, not two

Source: Shalom Baranes Associates.

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In an earlier design released by Shalom Baranes — the new architect hired by Mr. Trump in December — the east and south porticoes each had a triangular pediment. The one on the south portico has been removed in the latest plan.

But the pediment on the east portico (not shown in the view above) remains and its height is about four feet taller than the roof of the executive residence. Critics have said the design would dwarf the existing White House.

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Changed windows and doorways

Source: Shalom Baranes Associates.

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The number of arched windows facing west on the ballroom level has increased to nine from eight.

In addition, the first floor windows have been redesigned, with more doorways leading to the new East Wing garden.

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A new garden

These are the first renderings that include details about a garden that would replace the Jacqueline Kennedy Garden, which was demolished with the old East Wing.

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Sources: Nearmap (2025 aerial image); Shalom Baranes Associates.

Renderings show a grand staircase from the new East Colonnade to the garden. Stone-paved paths connect the garden to the first floor of the new East Wing.

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According to the plans, the new garden is larger than the old one, and will include a circular brick area and trees replanted from the old garden. The fountain from the old garden will also be brought back.

Asymmetrical pathway

To accommodate the massive size of the proposed East Wing, the main pathway around the South Lawn has been altered and is no longer symmetrical, renderings show.

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Sources: Nearmap (2025 aerial image); Shalom Baranes Associates.

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The final designs submitted last week have the same overall footprint as the plans from January, making clear Mr. Trump has rejected calls to make the building smaller.

The architects said last month that the White House was considering adding a “modest one-story addition” to the West Colonnade, to “restore a sense of symmetry to the original central pavilion.”

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