Yang Huiyan loses half his fortune

That “could leave it the most exposed to a market downturn,” said Kristy Hung, senior analyst at Bloomberg Intelligence.

Meanwhile, the automaker’s contract sales fell nearly 40% to 185.1 billion yuan for the first six months of the year. Bloomberg Intelligence estimates the developer would have to spend up to 337 billion yuan – more than its peers – to deliver properties it has pre-sold but has yet to book.

Country Garden is China’s largest developer in terms of sales.Credit:PA

Last month, Moody’s Investors Service downgraded Country Garden’s credit rating to junk and changed its outlook to negative, citing deteriorating financial condition and weakened access to long-term funding.

In response to questions, Country Garden said no projects were left unfinished and there was either a shortage of homes or supply was at a reasonable level in the Tier 3 and 4 towns in which it came inside.

Co-founded in the southern city of Foshan by Yeung Kwok Keung, Country Garden has grown rapidly over the past three decades as the country’s housing market boomed. His catchy slogan, “Get yourself a five-star home,” helped him make a name for himself in Guangdong province bordering Hong Kong and fueled an expansion across the country. By the end of last year, it had more than 3,000 projects in 299 Chinese cities and a few in Malaysia.

“The mainland real estate crisis has sent a domino effect down the capital chain of the entire industry. Uncertainties will still persist.

Kenny Ng, Strategist at Everbright Securities International

Yeung transferred her stake to Yang, her second daughter, in 2005 after joining the company as a personal assistant to learn the ropes and eventually succeed her. At 25, the Ohio State University alum was China’s richest woman. She became Vice President of Country Garden in 2012 and Co-President in 2018.

Yang, now in her 40s, owns about 60% of Country Garden and a 43% stake in its management services unit. Her husband, sister and cousin all sit on the company’s board and, like Yeung, have kept a low profile, avoiding media interviews.

To help defuse what could be the biggest mortgage revolt in China’s history, its banking regulator has pledged to ensure property developers can complete construction of pre-sold homes, and a report says the Council of State has approved a plan to create a fund supporting certain property developers and companies.


Still, officials need to send clear guidelines to banks on how to handle the crisis. This could prompt them to reshape their exposure to the industry and take a more cautious approach to avoiding bad debts, which would make it harder for private builders to raise funds.

“The mainland real estate crisis has sent a domino effect down the capital chain of the entire industry,” said Everbright’s Ng. “The uncertainties will still persist.”


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