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Tuesday, August 15, 2023 6:23:09 PM
Country Garden Holdings, a massive Chinese real-estate empire, missed a crucial debt coupon payment last Monday placing them just weeks away from a $199 billion collapse that will dwarf the Evergrande collapse.
A collapse will affect more than one million home buyers in mainland China, who have paid up-front.
Founder Yang Guoqiang gave his $33 billion of Country Garden ownership shares to his daughter Yang Huiyan in 2012 when she was 30 years old, making her the wealthiest woman in China.
Guoqiang stepped down from the CEO position March 1 in favor of his daughter, now age 41, whose net worth has plunged 52% down to $16 billion and still falling.
Country Garden founder Yang Guoqiang
In late December, Concrete Win Ltd, a company wholly owned by Yang Huiyan, extended an interest-free loan of nearly HK$5.1 billion ($647 million) to Country Garden “to support the operation and development of the group”. Earlier that month, Yang had agreed to sell a portion of her controlling stake in Country Garden Services Holdings, the group’s property management arm, for HK$5.06 billion, cutting her stake in the company from 43.15 to 36.12 percent.
Daughter Yang Huiyan facing complete financial collapse
Yang Guoqiang’s resignation continues a trend of mainland founder-chairmen stepping back from everyday operations in the wake of China’s property turmoil.
Last November, Beijing-based Modern Land announced that founder Zhang Lei would cease to be chairman and be replaced by the company’s president and executive director, Zhang Peng (no relation).
A month earlier, Longfor Group Holdings founder Wu Yajun had stepped down as chairperson and given her role to chief executive Chen Xuping, citing age and health reasons.
In September, Chinese billionaire couple Pan Shiyi and Zhang Xin resigned as chairman and chief executive of Soho China shortly after the company’s CFO, Ni Kuiyang, came under investigation for insider trading associated with Blackstone’s abandoned buyout of the commercial developer.
A collapse will affect more than one million home buyers in mainland China, who have paid up-front.
Founder Yang Guoqiang gave his $33 billion of Country Garden ownership shares to his daughter Yang Huiyan in 2012 when she was 30 years old, making her the wealthiest woman in China.
Guoqiang stepped down from the CEO position March 1 in favor of his daughter, now age 41, whose net worth has plunged 52% down to $16 billion and still falling.
Country Garden founder Yang Guoqiang
In late December, Concrete Win Ltd, a company wholly owned by Yang Huiyan, extended an interest-free loan of nearly HK$5.1 billion ($647 million) to Country Garden “to support the operation and development of the group”. Earlier that month, Yang had agreed to sell a portion of her controlling stake in Country Garden Services Holdings, the group’s property management arm, for HK$5.06 billion, cutting her stake in the company from 43.15 to 36.12 percent.
Daughter Yang Huiyan facing complete financial collapse
Yang Guoqiang’s resignation continues a trend of mainland founder-chairmen stepping back from everyday operations in the wake of China’s property turmoil.
Last November, Beijing-based Modern Land announced that founder Zhang Lei would cease to be chairman and be replaced by the company’s president and executive director, Zhang Peng (no relation).
A month earlier, Longfor Group Holdings founder Wu Yajun had stepped down as chairperson and given her role to chief executive Chen Xuping, citing age and health reasons.
In September, Chinese billionaire couple Pan Shiyi and Zhang Xin resigned as chairman and chief executive of Soho China shortly after the company’s CFO, Ni Kuiyang, came under investigation for insider trading associated with Blackstone’s abandoned buyout of the commercial developer.
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