China’s richest man lost about $13 billion in just one day to market selling after President Xi Jinping secured a third term.

  • The 13 richest people in China lost $12.7 billion on Monday alone, according to Bloomberg.
  • Their losses were due to heavy selling in the market during President Xi Jinping’s third term in office.
  • Investors fear the economic fallout from Xi’s Covid-Zero stance and “shared prosperity” agenda.

China’s richest man lost billions in just one day, after a massive market sell-off sent Hong Kong shares to a 14-year low on Monday, according to the Bloomberg Billionaires Index.

The 13 richest Chinese businessmen on Bloomberg’s Billionaires List have seen $12.7 billion written off their fortunes, after President Xi Jinping’s consolidation of power raised concerns about the prospects for a recovery in China’s economy over Xi’s top-down approach to economic management.

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

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

China’s richest person — billionaire Zhong Shanshan, who is chairman of Hong Kong-listed Nongfu Spring and major shareholder of Shanghai-listed drugs, Wantai — also saw his net worth drop $2.1 billion to $60 billion, following shares in both listed companies. fell on Monday.

Share prices of Chinese companies have been under pressure since 2021, due to sporadic coronavirus shutdowns and regulatory crackdowns amid Beijing’s quest for “shared prosperity” – a concept that the rich should share their wealth with the poor to create a more equal society. .

They are now under more pressure, after Xi secured an unprecedented third term as Communist Party chief on Sunday, filling his core leadership team with loyalists. Analysts said this could signal a tightening grip on the direction of the world’s second largest economy.

“Investors are concerned that President Xi will now have a greater role in the direction of politics, with his new senior leadership team surrounded by his loyalists,” wrote Yeap Jun Rong, market analyst at IG, an online trading platform. “This suggests that we may expect more of the status quo in economic policies, which means further consolidation of China’s non-spreading coronavirus stance and further steps toward the ‘shared prosperity’ agenda.

Hong Kong’s benchmark Hang Seng Index rose 0.9% to 15,313.22 at midday Tuesday. The Shanghai Composite Index rose 0.8% to 2,999.55.

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