Asia’s richest woman, Yang Huiyan, has lost more than half of her $24 billion fortune in just one year, the Guardian reported Thursday. This is the impact of the crisis on the Chinese real estate market. The Chinese authorities have dealt with over-indebtedness in the real estate sector, which has sent its major players hovering on the brink of bankruptcy.
Yang is the largest shareholder in Chinese mortgage giant Country Garden. Over the course of the year, her net worth fell more than 52 percent to $11.3 billion from $23.7 billion last year, according to the Bloomberg Billionaires Index.
China. Yang Huyan lost half of her property
The Chinese woman inherited the property from her father, who transferred her stakes in 2005, state media reported. Two years later, she became the richest woman in Asia. Now she can hardly hold on to that title. Chemical fiber mogul Fan Hongwei in his wake, with a net worth of $11.2 billion.
The British daily reported that the Chinese authorities cracked down on over-indebtedness in the real estate sector in 2020, leaving major players such as Evergrande and Snack struggling to make payments and forced to renegotiate with creditors, bringing it to the brink of bankruptcy.
Real estate industry crisis
Yang’s fortune has been hit hard, which may mean that the crisis is spreading to developers. Listed on the Hong Kong Stock Exchange, Country Garden shares are down 15 percent. After the company announced that it would sell shares to raise funds.
It is estimated that the real estate sector is responsible for 18-30 per cent. China’s GDP is a major driver of growth in the world’s second largest economy. Analysts warn that the industry is in a “vicious cycle” and consumer confidence could be further undermined after the release of bleak growth numbers for the second quarter, which are expected to be the lowest since the start of the COVID-19 pandemic, the Guardian writes.
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