China’s richest billionaires lost $53 billion after a tumultuous trading session, an unending nightmare
Zhong Shanshan, who is known as China’s bottled water king, lost 5 billion USD. He was also the person who lost the most money in yesterday’s trading session. Pony Ma of Tencent Holding Ltd. lost $3.3 billion.
Stock Nongfu Spring Co. Zhong’s shares fell 9.9%, the worst drop since the company went public 18 months ago. However, with a net worth of $60.3 billion, Zhong is still the richest person in China.
Tencent shares also suffered their biggest drop since 2011 after reports emerged that the company was facing a record fine for violating anti-money laundering regulations. Pony Ma, once the richest man in China, has now dropped to third place with a net worth of $35.2 billion. According to the WSJ, the Central Bank of China discovered that Tencent’s WeChat Pay allows money transfers for illegal purposes among other problems.
Meanwhile, 76 Chinese billionaires among the world’s 500 richest have lost as much as $228 billion this year, or a fifth of their total wealth.
However, the nightmare of Chinese billionaires is not over yet. In the ongoing trading session on March 15, Chinese stocks continued to sell off. At 12:56 am Hanoi time, Hang Seng continued to decrease by 860 points, equivalent to 4.36%. Shanghai also dropped sharply when it lost 3.56%, or 114.77 points. SZSE Component loses less with 2.15% blown value.
The sharp drop in Chinese stocks was triggered by US officials saying Russia has asked Beijing to assist in the conflict in Ukraine, raising concerns about the risk of China being punished by Washington. What happened on the Russian stock market has really spread fear among investors, especially foreign investors.
What is happening continues to prolong the nightmare of China’s billionaires, especially in the technology sector. Before that, China has aggressively imposed stricter management measures on its Internet industry, causing tens of billions of dollars to be blown away from the capitalization of technology giants. Tencent has avoided most of the legal troubles so far.
Management measures have also caused Jack Ma, the founder of Alibaba, to lose his position as the richest man in China. Currently, Jack Ma holds a fortune of $ 34 billion, much lower than the $ 60 billion that this man held at the end of 2020, before the Chinese Government took antitrust measures, block Ant Group’s IPO.
Besides, the conflicts between the US and China surrounding technology companies as well as the issuance of new regulations by Washington to stricter controls on Chinese technology stocks continue to prolong the losses.
On Friday, shares of Didi Global Inc. dropped a record 44% as the ride-hailing giant called off plans to prepare for an IPO in Hong Kong. Its founder Chang Wei isn’t even a billionaire anymore.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
