Asia’s richest woman loses half of her fortune due to China’s property crisis

Yang Huiyan, Asia’s richest woman, has lost more than half of her wealth due to China’s current real estate crisis.

Huiyan, 41, controls China’s largest property developer, Country Garden Holdings. She had inherited her fortune from her father, Yang Guoqiang, in 2005. She became Asia’s richest woman in 2007 when the company went public. His father had founded the company in Foshan, Guangdong province, in 1992.

His net worth has fallen to $11 billion from nearly $24 billion in just one year, according to the Bloomberg Billionaires Index. The decline in her net worth has narrowed the wealth gap between Huiyan and her fellow female billionaires nationwide.

Fan Hongwei, who chairs Hengli Petrochemical, is just $100 million away from overtaking Huiyan in wealth and becoming Asia’s richest woman.

The country’s real estate sector is struggling due to the default crisis. Country Garden is among the companies that have been hit hard by the debt crisis. Its stock fell 15% on Wednesday after the company announced it would issue new shares to raise cash and pay off debt.

It has become China’s second most indebted developer after Evergrande Group. It has debts of $220 billion at the end of 2021.

“The company still has significant debt and saw slower monthly sales growth in June, even as China resumed work,” Kenny Ng, strategist at Everbright Securities International in Hong Kong, told Bloomberg.

China’s housing crisis is only set to get worse, with buyers threatening developers saying they will stop paying mortgages if their homes aren’t completed on time.

The boycotts have also made banks more cautious, afraid to issue new mortgages. This could further shake the real estate market and make it difficult for the real estate market to rebound.

“Without sales, many more developers will collapse, which is both a financial and economic threat,” analysts at Capital Economics said.

S&P Global Ratings said in a recent report that property sales in China could fall by a third this year due to mortgage strikes. Several media have claimed that the government is preparing a rescue plan for the sector which could cost 300 billion yuan (44 billion dollars).

Property sales in China are expected to plunge this year, according to new estimates from S&P Global Ratings.
Reuters

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