Home » China’s Economic Crisis Worsens as Real Estate Industry Faces Turmoil, Leading to Suicides and Financial Constraints

China’s Economic Crisis Worsens as Real Estate Industry Faces Turmoil, Leading to Suicides and Financial Constraints

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China’s Economic Crisis Worsens as Real Estate Industry Faces Turmoil, Leading to Suicides and Financial Constraints

China’s Economic Crisis and Real Estate Industry Facing Worsening Challenges

October 1, 2023 – In a comprehensive report by reporter Li Hui, China’s economic crisis is deepening, particularly in the real estate industry. Thunderstorms in the sector have resulted in millions of Chinese citizens and real estate developers facing severe financial difficulties. Tragically, some individuals are unable to cope with the immense pressure and have taken their own lives.

On September 30, “Daily Economic News” reported the passing of Guan Shanxiang, a renowned private equity director who was once known as “China’s Buffett.” While the cause of his death was not specified in media reports, rumors circulating on social platforms suggest that he committed suicide.

Guan Shanxiang managed seven funds, with all of his private equity positions held in Sunac, Vanke, Poly, and Ping An. As Sunac’s stock continued to decline, he believed in the strategy of accumulating shares at lower prices. Unfortunately, his largest holding, Evergrande Real Estate, became his last lifeline. With Evergrande falling by 98%, Shanxiang incurred a massive 70% loss, leading to his tragic decision.

Netizens expressed their sorrow, lamenting that a lifetime of wealth could be reduced to nothing in a single day.

Guan Shanxiang’s personal information reveals that he was 38 years old and achieved financial freedom at the age of 28. Known for his high requirements for air quality and a vegetarian lifestyle, he had three children and founded the Global Heritage Fund in 2019.

The private equity products offered by Haosifang Assets have also been affected by the economic crisis. According to data from the Private Equity Pai Pai Network, the latest net unit value of Haosifang Shanxiang No. 1 product was 0.395 yuan as of September 22, 2023. Since its establishment, the product has incurred a cumulative loss of 60.5%.

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Other products under Haosifang Assets also suffered heavy losses. Haosifang Shanxiang No. 4 had a cumulative loss of 60.5%, while Haosifang Shanxiang No. 3 and No. 2 both experienced losses of 61.4% and 64.5% respectively.

The dire state of the real estate industry has had far-reaching consequences. Not only have private equity chairmen who believed in real estate value stocks resorted to extreme measures, but even ordinary individuals have faced devastating hardships. A distressing video circulated online documented a man losing his job and his home being sold at auction. Despite the auction, he still owed the bank 2 million yuan. After begging the bank for leniency and being refused, the man tragically chose to jump off the bank manager’s building.

The situation is causing deep concern among netizens, with one message stating, “Houses in the community where I live in Shanghai are being auctioned one after another.”

As China’s economy continues to decline and numerous real estate developers face debt crises, some netizens fear that more suicides may occur in the future.

Editor in charge: Lin Li
This article or program was edited and produced by Voice of Hope. When reprinting, please indicate Voice of Hope and include the original title and link.

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