Yang Huiyan, the chair of Chinese real estate giant Country Garden, has lost 84% of her wealth, according to Bloomberg's Billionaire Index. Yang was once counted among the leading billionaires of the world; however, with the advent of the pandemic and the economic crisis that it brought forth, Yang has lost approximately $28.4 billion in revenue to date, Bloomberg later reported.
What happened?
One of China's leading developers, Country Garden, shot into the limelight on Tuesday when the firm missed two of its interest payments on two US dollar-denominated bonds. The predicament reflects adversely on the overall Chinese developer market, with investor interest dwindling in the sector. According to Bloomberg, shares in the construction market in Hong Kong alone have plunged 16% following recent news and developments.
The dollar bond holders told the media that they are yet to receive coupon payments. The firm is already in great crisis with total liabilities amounting to $1.4 trillion yuan ($199 billion) since last year. The firm can be termed a defaulter if it fails to make payments within 30 days.
Read also:Another 20 Trillion To Israel A Comprehensive Analysis
The fall from grace
Country Garden is dubbed a leading construction and private sector developer in China and has employed nearly 70,000 people to work in the sector. The firm's dwindling position could create an imbalance in the developer sector, considering the holistic impact that the organization holds on the market.
"Any default would impact China’s housing market more than Evergrande’s collapse, as Country Garden has four times as many projects," Bloomberg Intelligence analyst Kristy Hung stated in her report Wednesday. "Any debt crisis at Country Garden will have a far-reaching impact on China’s housing market sentiment and could significantly weaken buyer confidence in solvent private developers."
Holders of the coupon payments have further added that they are yet to receive a response from the firm about whether they have made the payments or not. Alongside the developments, the shares of Country Garden have plunged 8.4%, adding more pressure to the growing crisis.
Further collapse and fallout
Citing the local media outlet Paper.cn, Bloomberg reported how Country Garden was suffering through "temporary liquidity pressure" due to declining sales. The firm was also looking forward to seeking funds to resolve the debt crisis that it was handling on its own.
The company's leading market impact and its sudden downfall have sent shockwaves in the entire sector. The firm's annual report shows that 60% of its projects are in Tier II And Tier III Chinese cities, which are struggling to gain momentum due to weak housing demands.
Yang Huiyan's current net worth
After losing a significant amount of money, Yang Huiyan's current net worth is $5.5 billion. According to Bloomberg's billionaire index, she stands at #475th position and has lost more than $450 million on Tuesday alone.
