China is in a Property Crisis, This Woman Lost Rp. 155 Trillion

ADVERTISEMENT

SCROLL TO RESUME CONTENT

–

This year the company’s shares have slumped as real estate in China is also under pressure. Starting from the decline in house prices, a decrease in the number of buyers to defaults that have occurred in several companies since last year.

Despite the decline in her wealth, Yang remains the richest woman in Asia according to the Bloomberg Billionaires Index.

Last year, one of the giant property companies in China, Evergrande, failed to pay the bonds they issued in US dollars. Then Kaisa and Shimao Group are also facing financial problems.

The crisis in the real estate sector continues to escalate as thousands of people who buy houses are dissatisfied with the delayed construction. Even the buyers threatened to stop payments if the construction could not be on time.

Yang Country Garden Company is experiencing strong liquidity pressure. On Wednesday the developer announced it would sell the stock at a hefty discount of nearly 13%. In order to raise fresh funds of US $ 361 million.

The collected funds will later be used to pay off the company’s foreign debt. An analyst at Capital Economics said the threat of a boycott of installment payments from consumers would be a big threat to developers.

Especially now that developers find it difficult to sell houses because many people are delaying buying new homes.

In a report S&P Global Ratings predicts property sales in China could fall by up to a third this year. “Without the sale of property developers will find it difficult, this is a threat to finances and the economy,” he said.

(kil/dna)

–