September 28, 2022

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How ‘Asia’s richest woman’ lost half her fortune in 1 year | Economy

Over the years, his fortunes have been the focus of headlines, commentary and calculations China.

Yang Huyan, 41, is not only the richest woman in the country, but the richest in all of Asia.

Since inheriting the real estate empire from his father over a decade ago, his wealth has continued to grow. But things changed in 2022: last year it suffered a real decline. Yang’s net worth has fallen more than 52% in the past year, according to calculations by the Bloomberg Billionaires Index.

In 2021, Bloomberg estimates the businessman’s net worth to be around US$33.9 billion (about R$173 billion), down from last July’s estimate of US$16.1 billion (about R$80 billion).

Economists don’t just see this as a bad sign for the real estate market. ChinaBut it is also a key warning about the future of the world’s second-largest economy.

The country’s real estate sector has presented serious problems such as falling home prices, reduced demand from buyers and a crisis of bad loans, which has affected some of the biggest real estate developers since 2020.

The situation reached such a level that even some banks ran out of money, which led to protests in some cities of the Asian country.

Although Yang was Asia’s richest woman, her position began to falter.

He is followed by chemical fiber entrepreneur Fan Hongwei, who has assets worth about $16 billion, according to Bloomberg.

Born in 1981 in Shundak County, Foshan City, Southern Guangdong Province. ChinaYang is the daughter of Yang Guoqiang, one of the richest men in Asia.

He grew up in one of the most powerful families China, she received an excellent education and was sent to America in her youth. He graduated from The Ohio State University in 2003 with a degree in Arts and Sciences.

When returning ChinaIs it over there? Most of the shares inherited from his father in 2007 are Country Garden Holdings, a major real estate developer. China On sale.

Founded in Guangzhou in 1992, Country Garden Holdings was successful after its IPO in Hong Kong and raised about US$1.6 billion, similar to what Google received after its US IPO in 2004.

Although known for staying out of the public eye and living a low-key life, Yang has been the focus of countless headlines both in and out of the mainstream. China.

One of the most infamous cases occurred in 2018, when a leak of legal documents known as “The Cyprus Papers” showed that he had acquired Cypriot citizenship. China Does not recognize dual nationality.

Chinese market scholars describe Yang as a creative woman with business acumen.

In June last year, the International Hospitality Institute recognized him as one of the most powerful people in the global hospitality industry.

However, his business was already showing signs of weakness.

The country’s real estate market situation has been complicated since 2020, not only because of the coronavirus pandemic, but also because the Chinese authorities have tried to control excessive debt in the real estate sector. This exposed the big builders to a battle for payments and forced them to renegotiate with their creditors.

Chinese real estate giant Evergrande has again suspended stock market operations

Following that, so far this year, several major developers, including Kaisa and Shimao Group, have also sought protection from lenders.

The crisis has worsened in recent weeks following the declaration of a “buyers’ strike” in which thousands of people defaulted on mortgage payments due to delays in starting construction work on their homes. Due to delay in delivery of houses, developers did not start receiving mortgage payments on time.

All of this as Country Garden, which had done well in the first months of the pandemic, ran into cash flow problems, leading it to sell shares at a nearly 13% discount to raise funds last July.

The long-term outlook does not bode well for Yang, his fortunes or the company he represents.

In a report last July, S&P Ratings rated housing sales China That could drop by a third this year due to mortgage strikes, a collective movement in which buyers decide to stop mortgage payments on properties that don’t meet delivery schedules.

Meanwhile, Capital Economics, an independent economic research firm based in London, predicted that “without sales, many developers will go under, posing a financial and economic threat.” China.

– This text was originally published at https://www.bbc.com/portuguese/internacional-62512753