Yang Huiyan: Asia’s richest woman has lost more than half of her fortune due to the financial crisis in China

The 41-year-old controls Country Garden Holdings, China’s largest real estate developer by sales. Her stake was largely passed down from her father, Yang Guoqiang, who founded the company in Foshan, Guangdong in 1992.

Country Garden shares have lost more than half their value this year as the country’s real estate sector struggled with falling home prices, weakening consumer demand and debt default crisis it has swept some of its biggest developers since last year.
Despite losing more than half of his fortune, Yang stays richest woman in asia Bloomberg Billionaire Index. The fall in her net worth narrowed the wealth gap between her and other female billionaires in China, leaving Yang only $100 million worth of he was surpassed in wealth by Fan Hongwei. Fan chairs Hengli Petrochemical, chemical fiber manufacturer.
Evergrande, China’s largest debt-ridden real estate company, defaulted on its dollar bonds in December after months of liquidity problems. Since then, several other major developers, including Kaisa and Shimao Groupalso sought protection from creditors.
The real estate crisis has escalated in recent weeks as thousands of disgruntled homebuyers who made down payments on unfinished homes threatened to stop paying the mortgage if construction is not completed on time.

Country Garden is also facing a growing liquidity squeeze. On Wednesday, the developer announced that it would sell the shares at a nearly 13% discount to raise HK$2.83 billion ($361 million) from Tuesday’s closing price.

A portion of the proceeds will be used to pay off the company’s offshore debt, he added.

“Mortgage boycotts pose a dual threat to developers and the housing market,” Capital Economics analysts said in a report released Wednesday.

China real estate crisis worsens as major Shanghai developers default

They drew attention to the problem that cash-strapped developers are unable to complete properties they have already sold, which “repels new homebuyers.” The boycotts have also forced banks to be more cautious about issuing mortgages, which could further dampen property sales, they added.

In a report released earlier this week, S&P Global Ratings estimated that real estate sales in China could fall by a third this year due to mortgage strikes. because people think developers can’t pre-sold apartments are the most common way to sell homes in the country in a timely manner.

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