Policy- The 13 richest people in China lost $12.7 billion on Monday alone, per Bloomberg.
- Their losses were due to a massive market sell-off over President Xi Jinping's third term in office.
The richest people in China lost billions in just one day, following a massive market sell-off which sent Hong Kong shares down to their 14-year lows on Monday, according to the Bloomberg Billionaires Index.
The 13 wealthiest Chinese tycoons on Bloomberg's billionaires' list saw $12.7 billion of their wealth wiped-out, after President Xi Jinping's consolidation of power sparked fears about the recovery prospects for China's economy over Xi's top-down approach in economic management.
Tencent founder and CEO, Pony Ma, was the biggest loser in the market rout, as his net worth plunged by $2.5 billion to $24 billion, per Bloomberg. Ma's losses were largely due to losses in the share price of Hong Kong-listed Tencent, which closed 11% lower on Monday at 207 Hong Kong dollars, or $26.4.
Ma's fellow tech tycoons were also badly hit by Monday's plunge in stock prices. Alibaba founder Jack Ma lost $1.2 billion, bringing his net worth down 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 of Shanghai listed pharma, Wantai — also saw his net worth fall $2.1 billion to $60 billion, after shares in both listed companies fell on Monday.
The share prices of Chinese companies 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 rich must share their wealth with the poor to create a more equal society.
They are now coming under further pressure, after Xi secured an unprecedented third term as the Communist Party chief on Sunday, and filled his core leadership team with loyalists. This could signal a tighter grip on directing the world's second-largest economy, analysts said.
"Investors are worried that President Xi will now have a greater say in policy direction, with the new top leadership team surrounded by his loyalists," wrote Yeap Jun Rong, a market strategist at IG, an online trading platform. "This suggests that we may be expecting more of a status-quo in economic policies, which means further anchoring down of China's zero-Covid stance and further steps towards the 'common prosperity' agenda."
Hong Kong's benchmark Hang Seng Index was 0.9% higher at 15,313.22 at midday on Tuesday. The Shanghai Composite Index was up 0.8% at 2,999.55.