China’s richest people lost around $13 billion in just one day in the market sell-off

• The 13 richest people in China lost $12.7 billion on Monday alone, according to Bloomberg.
• Its losses stemmed from a market sell-off during President Xi Jinping’s third term.
• Investors fear the economic fallout from Xi’s Covid-zero stance and “common prosperity” agenda.

China’s richest people lost billions in just one day, after a market sell-off sent Hong Kong stocks plunging to 14-year lows on Monday, according to the Bloomberg Billionaires Index.

The 13 richest Chinese tycoons on Bloomberg’s list of billionaires saw $12.7 billion of their wealth disappear, after President Xi Jinping’s consolidation of power sparked fears about the prospects for China’s economic recovery due to the approach of Xi’s top-down in economic management.

Tencent founder and CEO Pony Ma was the biggest loser in the market rout, as his net worth plummeted by $2.5 billion to $24 billion, according to Bloomberg. Ma’s losses were largely due to losses in the share price of Hong Kong-listed Tencent, which closed down 11% on Monday at HK$207, or $26.4.

Ma’s fellow tech tycoons were also hit hard by Monday’s plunge in share prices. Alibaba founder Jack Ma lost $1.2 billion, reducing his net worth to $29 billion, while JD.com’s Richard Liu saw his net worth fall by $1.3 billion to $9 billion, according to Bloomberg. Alibaba shares fell 13% on the Nasdaq and 11% in Hong Kong. Nasdaq and Hong Kong-listed JD.com fell 13% on both exchanges.

China’s richest person, bottled water billionaire Zhong Shanshan, who is the chairman of Hong Kong-listed Nongfu Spring and a major shareholder in Shanghai-listed drugmaker Wantai, also saw his net worth fall. 2.1 billion to $60 billion, after shares in both listed companies. fell on Monday.

Chinese company share prices have been under pressure since 2021, due to sporadic COVID-19 lockdowns and regulatory crackdowns amid Beijing’s push for “common prosperity,” a concept that the wealthy should share their wealth with the poor to create a more equal society. .

They are under more pressure now, after Xi secured an unprecedented third term as Communist Party chief on Sunday and filled his core leadership team with loyalists. This could signal tighter control over the direction of the world’s second-largest economy, analysts said.

“Investors are concerned that President Xi now has more of a say in directing policy, with the new leadership team surrounded by his loyalists,” wrote Yeap Jun Rong, market strategist at IG, an online trading platform. . “This suggests we may be expecting more of a status quo in economic policies, meaning further anchoring of China’s zero-Covid stance and more steps towards the ‘common prosperity’ agenda.”