2023-08-11 11:11:37
Massive decline in wealth
Yang’s wealth has lost $28.6 billion from its peak, to $5.5 billion, the biggest drop among the Bloomberg Index’s ultra-wealthy over that period.
The 41-year-old businesswoman made her fortune mainly from her stake in Country Garden, whose shares have fallen nearly 60% this year as slumping home sales and high refinancing costs hit China’s real estate industry.
China’s real estate sector contracted in the second quarter
Headquartered in Foshan and listed in Hong Kong, the Hong Kong-listed company reported revenues of about 430 billion yuan ($60 billion) in fiscal 2022. But Yang’s loss of fortune cannot compare to that incurred by another Chinese real estate billionaire: Hui Kayan, chairman of ” China Evergrande Group, whose fortune plunged to $3.2 billion from a peak of $42 billion in 2017, as his real estate company faltered.
The fortune of China’s real estate tycoons eroded after the government cracked down on excessive borrowing in the industry in 2020, making it difficult for developers to refinance bloated debt.
The ensuing cash crunch has caused record defaults, wiped out billions of dollars in investments and delayed construction of thousands of homes. Just before the crash, the rapid expansion of the residential real estate sector made Yang, Hui and their peers some of the wealthiest Chinese.
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