Home News Asia’s Richest Woman Loses More Than $12 Billion In China Property Crisis

Asia’s Richest Woman Loses More Than $12 Billion In China Property Crisis

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Yang Yan’s property has hit China’s real estate crisis hard.

Beijing:

According to the billionaire index, the wealthiest women in Asia have lost more than half of their wealth in the past year as China’s real estate sector suffered a cash crisis.

According to the Bloomberg Billionaires Index, Yang Yan, a majority shareholder in China’s real estate giant Country Garden, has net worth of $ 11.3 billion, down more than 52% from $ 23.7 billion last year.

Guangdong-based Country Garden’s Hong Kong-listed stake was hit hard Wednesday after the company announced it would sell its new stake to raise cash.

According to state media, Yang inherited her wealth when her father (Country Garden founder Yang Guoqiang) transferred his shares to her in 2005.

She became the wealthiest woman in Asia two years after the developer went public in Hong Kong.

However, she now barely holds the title, and chemical tycoon Hwang Hongwei has runner-up close to $ 11.2 billion on Thursday.

Chinese authorities cracked down on debt overhangs in the real estate sector in 2020, forcing major companies such as Evergrande and Sunac to struggle to pay and renegotiate with creditors on the verge of bankruptcy.

Furious about construction delays and property delivery delays, buyers across the country are beginning to refrain from paying mortgages for homes sold before they are completed.

The country garden remained relatively intact due to industry turmoil, but surprised investors with its announcement Wednesday. It planned to raise more than $ 343 million through the sale of shares, in part to pay its debt.

Country Garden said in a filing with the Hong Kong Stock Exchange that the proceeds from the sale would be used for “existing offshore debt, general working capital, and refinancing for future development purposes.”

Banking regulators in China are calling on lenders to support the real estate sector and meet the company’s “reasonable funding needs” as analysts and policy makers fear financial transmission.

The real estate sector is estimated to account for 18-30% of the country’s GDP and is a major driver of the world’s second largest economic growth.

Analysts warn that the industry is in a “vicious circle” that further weakens consumer confidence following the disastrous second-quarter growth announcement, which was the worst since the Covid-19 pandemic began.

(Except for the headline, this story has not been edited by NDTV staff and is published from the Syndicate Feed.)

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