In a remarkable display of philanthropy, billionaire Yang Huiyan, once hailed as Asia’s richest woman, is taking a path opposite to what many other tycoons would opt for during a financial downturn. Approximately a year after witnessing a significant loss in her wealth due to China’s real estate sector crisis, the 42-year-old Chinese business magnate is generously donating over half of her company to charity.

Yang Huiyan Is Different than the Other Billionaires

While most billionaires in such situations focus on cost-cutting measures and preserving their fortunes, Yang Huiyan has chosen to take a different approach. As the founder of China’s largest property developer, Country Garden Services Holdings Company, she is offering approximately 55% of her personal stake in the property management firm, valued at a staggering $826 million, to a charity established by her younger sister.

According to an official statement released by the company, Yang Huiyan’s charitable endeavor involves donating around 675 million shares of Country Garden Services, accounting for 20% of the total business, to the Guoqiang Foundation Hong Kong for charitable purposes.

The ongoing real estate crisis in China has dealt a severe blow to Yang’s financial standing, leading to an 80% drop in her fortune over the span of about two years, as reported by Bloomberg’s wealth index. Despite this significant setback, her current wealth of nearly $7 billion will still remain far beyond the aspirations of most individuals.

This remarkable act of philanthropy by Yang Huiyan serves as a shining example of compassion and benevolence amid challenging economic circumstances. Her charitable contribution is poised to make a meaningful difference in supporting various causes, showcasing that even during tough times, generosity can prevail.

The $826 Million Donation To Charity

In a significant move, billionaire Yang, who recently assumed the position of chairwoman, has made her mark in the realm of philanthropy. Taking over from her father, Yang Guoqiang, who relinquished his roles as chairman and executive director in March, she has demonstrated her commitment to charitable causes.

Following her generous donation, Yang now holds a 16.12% stake in Country Garden Services. While she may no longer be the company’s largest shareholder, the 42-year-old property tycoon will retain control over the voting rights of the donated stock. This arrangement grants her effective control of more than 36% of the shares, as reported by Fortune.

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The Guoqiang Foundation, responsible for the philanthropic pledge, has vowed not to sell the donated shares for the next decade, according to an official statement. The foundation intends to utilize the proceeds from the shares to foster advancements in science, education, culture, healthcare, and adolescent well-being in both Hong Kong and the Guangdong/Hong Kong/Macao Greater Bay Area.

Additionally, the funds will be directed toward other public welfare endeavors, such as assisting the underprivileged, providing disaster relief, and supporting rural revitalization in mainland China.

It’s worth noting that while the foundation will enjoy all the rights and interests of a shareholder, except voting rights, its primary focus remains on uplifting various sectors and communities in the region. This noble initiative is set to create a positive impact for the betterment of society in the years to come.

Why Investors Are Criticizing The Decision

In a recent development, Country Garden Holdings Company, one of China’s prominent private developers, has drawn attention with its donation announcement. While donations are generally seen as commendable acts, some investors appear unenthusiastic about the move.

According to a research report by UBS analysts, led by John Lam and cited by Bloomberg, the announcement has had a negative impact on share prices. The timing of the donation is being questioned, especially given the ongoing market discussions concerning the liquidity situation in the main property operation.

Country Garden’s financial situation has been under scrutiny due to the prevailing real estate crisis in China. The company recently issued a warning of a net loss during the first half of the year. This predicament was attributed to a decline in the gross profit margin in the real estate business and an increase in impairment provisions for property projects, directly influenced by the downward trend in real estate sales.

As investors express concerns and analysts ponder the implications, the company’s future prospects remain uncertain amidst the challenging landscape of the Chinese real estate sector.