China Property Crisis: Asia’s richest woman suffers huge loss due to China’s real estate crisis, half the wealth cleared

The debt burden on China’s real estate sector is continuously increasing, due to which projects are stalling and companies are reaching the verge of default.

Property crisis in China reduced the wealth of the rich

China is currently engulfed in several economic crises one after the other. Out of this, the crisis that is being feared to have an impact on the world is China’s property crisis. In fact, China’s real estate sector is in debt, due to which investors are keeping distance from the companies of the sector. At the same time, due to this crisis, the wealth of many billionaires has come to the ground. The situation is that in the midst of changing conditions, the richest woman in Asia has lost half her wealth. China Property market veteran Yang Huyan’s wealth has dropped by more than $11 billion in the past year. Yang is a majority shareholder of Country Garden. The most important thing about this whole story is that Country Garden is one of the few companies in the real estate sector of China whose economic health has not been directly affected by the property crisis. Yang has suffered the loss of investor confidence.

how much damage

Yang’s net worth was $23.7 billion a year ago, according to the Bloomberg Billionaires Index, which has now come down to $11.3 billion. During one year, it has seen a decline of 53 percent. The company’s stock fell by 15 percent in the same week. When the company announced that it would sell new shares to raise money. The company plans to raise more than $ 340 million to pay off the debt. For which it has been announced to issue new shares. This fall in the stock has also led to a decline in Yang’s assets. Yang got this wealth from his father. In 2005, he transferred his shares to Yang.

What is China’s real estate crisis

China focused on real estate development for rapid economic growth. Because of this, companies in the real estate sector started many big projects by taking high loans. Although many projects were not practical, it started causing damage to the real estate sector. At one time, many projects in China became famous as ghost towns. That is, no one lived in these projects with all the amenities. This started affecting the further projects of the companies and now many projects are incomplete and many companies are on the verge of bankruptcy due to non-payment of loans. China’s real estate sector has a debt burden of $ 300 billion.

read this also



Click to read more business related news TV9Hindi, And get all the news and tips from economy to personal finance in one place.

Source link

Leave your vote

Related Articles

Back to top button

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.