Chinese billionaire, who was once Asia’s richest woman, donates half her company to charity

Amidst the real estate crisis in China, 42-year-old billionaire Yang Huiyan is defying the norm followed by many wealthy individuals. Instead of focusing on survival and accumulating more wealth, she is taking an opposite path by generously donating over half of her company to charity.

Huiyan, formerly China’s top property developer with Country Garden Services Holdings Company, is giving approximately 55% of her personal stake in the property management firm, valued at around $826 million, as a charitable donation to her younger sister’s foundation.

As per a company statement, Huiyan has contributed approximately 675 million shares of Country Garden Services, which accounts for 20% of the total company, to the Guoqiang Foundation Hong Kong “for charitable purposes.”

Since assuming the position of chairwoman, billionaire Yang has made one of her first significant moves by making this philanthropic pledge. She took over the role from her father, Yang Guoqiang, who resigned as chairman and executive director in March.

Following the donation, Yang now holds a 16.12% stake in Country Garden Services. Despite losing her position as the company’s largest shareholder, she will retain control over the voting rights of the donated stock, granting her effective control of more than 36% of the shares, according to a report by Fortune.

According to the statement, the Guoqiang Foundation has committed not to sell the donated shares for a period of 10 years. The foundation intends to utilize the proceeds from these shares to promote the advancement of science, education, culture, healthcare, and adolescent well-being in Hong Kong and the Guangdong/Hong Kong/Macao Greater Bay Area. Additionally, the funds will be allocated for various public welfare initiatives, including supporting the underprivileged, providing disaster relief, and contributing to rural revitalization in the Chinese mainland.

Despite the expectation of appreciation for charitable donations, some investors have expressed a negative view. According to a research report by UBS analysts led by John Lam, the announcement of the donation is seen as unfavorable for share prices. The timing of the donation is deemed unusual, given the recent market discussions about the liquidity situation of the main property operation in light of China’s real estate crisis. While Country Garden Holdings Company was once among China’s largest private developers, it recently issued a warning of a net loss in the first half of this year, further impacted by the real estate crisis.