**Yang Huiyan Donates Over Half of Her Company Amid China’s Real Estate Crisis**
Leaders in times of crisis often resort to cost-cutting measures and desperate attempts to keep their businesses afloat. However, Yang Huiyan, one of China’s wealthiest women, is taking a different approach. As her company struggles with the country’s real estate crisis, she is donating over half of her personal stake in the business to a charitable foundation. This act of generosity is seen as a remarkable move in the face of adversity.
**Yang Huiyan Donates $826 Million to Charity**
Yang Huiyan, the chair of Country Garden Services Holdings Company, is donating approximately 55% of her personal stake in the property management firm. This generous act equates to a value of around $826 million. The donation will be made to the Guoqiang Foundation Hong Kong, a charitable organization founded by Yang’s younger sister. This significant contribution accounts for 20% of the total business and is designated for charitable purposes.
**The Effects of China’s Real Estate Crisis on Yang Huiyan**
Yang Huiyan, once known as Asia’s richest woman, has experienced an 80% decline in her fortune over the past two years. Bloomberg’s wealth index reports that her wealth has plummeted from $34 billion to nearly $7 billion due to the escalating real estate crisis in China. Despite this setback, her charitable donation leaves her still exceptionally wealthy, surpassing the dreams of most individuals.
**The Philanthropic Power Play**
Yang’s decision to make this philanthropic gesture is one of her first notable moves after being appointed chairwoman. She succeeded her father, Yang Guoqiang, who stepped down from his positions as chairman and executive director in March. As a result of the donation, Yang now holds a 16.12% stake in Country Garden Services. Despite losing her position as the largest shareholder, she maintains control over the voting rights of the donated stock, effectively giving her control of over 36% of the shares.
The Guoqiang Foundation has committed to not selling the donated shares for the next ten years. The proceeds from these shares will be used to support various causes, including the growth of science, education, culture, healthcare, and adolescent life in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area. Additionally, the foundation aims to assist in public welfare endeavors such as aiding the underprivileged, providing disaster relief, and rejuvenating rural communities in mainland China.
**Investor Reactions and China’s Real Estate Crisis**
Although Yang’s donation has been met with praise by many, some investors have expressed concerns. UBS analysts led by John Lam released a research report stating that they view the announcement as negative for share prices. They find the timing of the donation unusual, given the recent discussions surrounding the liquidity situation in the main property operation.
Country Garden Holdings Company, once one of China’s largest private developers, recently warned of a net loss in the first half of the year due to the ongoing real estate crisis. The company attributed the expected net loss to a decrease in gross profit margin for the real estate business and an increase in impairment provision for property projects. The impact of the downward trend in real estate sales has been significant.
In conclusion, Yang Huiyan’s decision to donate over half of her company amid China’s real estate crisis is a remarkable and generous act. Despite facing a significant decline in her personal wealth, she is prioritizing philanthropy and supporting charitable causes. The effects of the real estate crisis in China are evident, with even major companies like Country Garden Holdings experiencing financial challenges. However, Yang’s charitable donation and commitment to making a positive impact reflect her resilience and determination as a leader.