The losses of the Chinese businesswoman and billionaire Yang Huiyan increased, losing about $ 4.42 billion on an annual level and $ 60.6 million on a daily level, bringing her net worth to $ 5.46 billion at the end of trading on Thursday.
These losses came as the share of the “Country Garden” company, listed on the Hong Kong Stock Exchange, recorded its largest daily decline since last December, recording losses of 14.4%, after the company, classified among the largest real estate developers in China, announced that it had defaulted on payment after it had failed to pay two vouchers of $22.5 million in bonds due August 6.
The shares of the company, which is classified among the largest real estate developers in China, prompted a noticeable decline and reached those low levels, with most of its dollar bonds dropping below the level of 10 cents on the dollar, according to Duration Finance data.
The Chinese real estate company’s stock had fallen since the beginning of last Monday’s trading until the end of today’s trading, Thursday, to currently trade near its lowest level since November 2022.
And according to the data of the Bloomberg Index for the wealthy, the decline in the company’s share contributed to the loss of Huiyan, the former richest woman in Asia, and a decrease in her wealth by approximately 84%, equivalent to $28 billion, compared to its highest level at $ 34 billion, which is the level it reached in about two years, precisely since June. 2021.
One of the reasons for the drop in the stock was downgrading by global rating agencies.
Moody's, the credit rating agency, announced last Friday that it had downgraded Country Garden's rating to B1 from Ba3, putting this large real estate entity in junk territory after it recently canceled a share sale worth $300 million and a capital increase.
JPMorgan Chase Bank also downgraded the real estate developer last weekend, ruling out the imminent easing of liquidity concerns of China's private real estate developers.
Reversing growing concerns about weak property sales, limited access to financing, and a large amount of debt past due over the next 12-18 months.
The wealthy who own major real estate companies in China have lost their fortunes due to the Beijing government's crackdown on excessive borrowing in the real estate development sector since 2020.
Since then it has become difficult for developers, including billionaire Huiyan, to refinance their companies' ballooning debts, which has fueled defaults.
It is noteworthy that Huiyan became the richest woman in China at the age of 25, after she raised $ 1.65 billion in the initial public offering of Country Garden Company on the Hong Kong Stock Exchange in April 2007.
According to Bloomberg data, Yang's father co-founded Country Garden in 1992, and transferred a controlling stake to her in 2005 after she joined the company as his personal assistant, learning things before eventually succeeding him.
In early 2023, Yang Huiyan became the sole president of the company after her father's resignation, due to his advanced age.
Follow the latest news on Google News
