2023-08-14 10:29:50
The heiress of China’s largest real estate developer, Country Garden, saw her fortune melt like snow in the sun after the setbacks of her group and the sector.
Bad weekend and start to the week for one of China’s most powerful women. Or rather a bad year, we would even say. The one who was known as the richest woman in Asia fell from her pedestal and never stops falling. In two years, Yang Huiyan lost 84% of his fortune. Either $28.6 billion gone up in smoke, the greatest loss recorded during this period. At issue: his real estate group, Country Garden, is in turmoil and could soon close.
This Chinese flagship, the biggest seller of real estate in the country, seemed still last year spared by the crisis in the sector. That was before he was overtaken in recent months by the growing sluggishness in the real estate market.
We learn this Monday that he has not honored two obligations, giving rise to serious concerns about a potential payment default. To add to the tension, 31 billion yuan (3.9 billion euros) of bonds will mature in 2024, as noted by Moody’s, which lowered the group’s solidity rating to “Caa2”, signaling a “very high credit risk”.
hand in wallet
on this monumental, estimated at around 1.4 trillion yuan (176 billion euros) by Bloomberg, weighs heavily on the real estate sector, up to foreign markets. It is that a bankruptcy of Country Garden, of the order of the probable now, would cause a financial disaster and devastating damage to the Chinese economy, while it is already on the ground. Since the beginning of the year, the action has lost 70% of its value on the Hong Kong Stock Exchange.
In order to support Country Garden, Yang Huiyan and his family have mobilized the sum of 4.9 billion dollars from their personal resources, according to the indications of the group. Currently, the businesswoman’s wealth is valued at $5.5 billion, which places her at the 475th in the world ranking of the wealthiest peopleselon Bloomberg.
Yang Huiyan tries to reassure Country Garden’s resilience to overcome the crisis and survive, while apologizing for this setback.
It was from 2007 that she took the title of richest woman in mainland china, with net assets of $16.2 billion. Yang Huiyan had become a billionaire the same year at the age of 25, by inheriting the shares of the group founded by her father, Yang Guoqiang. A destiny initially designed for his older brother, before he died in 2005. His fortune then continued to climb to reach the $33.9 billion in 2021selon Bloomberg.
Everything was going well until the tide turned and the Chinese real estate sector is hit by several cascading crises: falling prices, plummeting demand and debt crisis affecting the main developers since 2020. In 2021, Evergrande, a competitor of Country Garden indebted to the tune of more than 300 billion euros, goes into default and shakes the area. Yang Huiyan tries to reassure Country Garden’s resilience to overcome the crisis and survive, while apologizing for this setback. Before history repeats itself?
CV express
- Born in 1981 in Shunde District, Foshan, China.
- HAS 23 ans, she graduated in Marketing and Logistics at Ohio State University, USA. Her father, the founder of Country Garden, then named her his personal assistant.
- In 2007she inherited the company and in the same year became China’s richest woman after Country Garden raised $65 billion in an IPO in Hong Kong.
- Following the setbacks of the Chinese real estate market, his fortune 52% bottom in 2022 alone. Since then, she has been losing money steadily.
- Country Garden risks a payment default in September if he does not pay two interest repayments on loans.
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