The once richest lady in China’s “Babylon” has lost half of her fortune due to recent cracks in the Chinese property market. The 27 year old, once worth an estimated $17.5 billion has lost around half of her worth since taking her company public about one year ago.
Yang Huiyan is one out of 80% of people in China who top the richest people list, having managed to acquire a fortune with real estate investments. She is the major shareholder of Country Garden, a high end residential developer. The worst affected listings are those in the big cities of southern China, namely Shenzhen. Once a hot property market, the price of flats have fallen by 28% since October 2007.
Beijing on the other hand shows a somewhat level playing field with leveled prices but a lower rate of appreciation altogether.
Hong Kong on the other hand is expected to stay stable, thanks to the currency adjustment to the American dollar. With local banks sacking employees these days the signs are clearly showing that the frenetic building pace of last year has taken a somewhat somber dive.
With late changes last year by the Chinese government in southern China, investors now have to cough up a 40% down payment on property investments. This and newly imposed transaction taxes has served to create a bit of a doom gloom for exporters on the south.
The total amount of wealth by China’s top ten richest has been estimated to have shrunk by U$31 billion. Now that is a lot of moolah for ten people to lose. You can see for yourself on the recently updated Hurun list.
