Connect with us

Hi, what are you looking for?

Financial News

Chinese Tycoons Lose Billions Of Dollars In Market Sell-Off

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial strategies in managing the country and its economy, particularly in its “zero-COVID” policy resulting in constant severe lockdowns, have investors nervous about the future stability of the Chinese market.

As a direct result of this sell-off, 13 of the wealthiest individuals in China each lost billions of dollars from their individual net worths. Those affected include prolific individuals like Tencent founder Pony Ma, Alibaba founder Jack Ma, and Nongfu Spring chairman Zhong Shanshan. Altogether, these individuals and others lost approximately $12.7 billion.

Besides the COVID lockdowns, Beijing has also subjected the Chinese economy to gradually stricter regulations and rules, presumably in an effort to reach “common prosperity,” wherein the wealthiest individuals of a society must contribute their earnings to those on the lowest rungs.

“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,” Yeap Jun Rong, a market strategist at online trading platform IG, wrote in a statement picked up by Business Insider. “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.”

Image Source: Bloomberg.com

You May Also Like

Stocks

Back in April, Tesla and SpaceX CEO Elon Musk made major waves when he announced his intent to purchase the social media platform Twitter...

Stocks

As fears of inflation are affecting the entire United States economy, one sector that’s taking on the brunt of the damage is the housing...

Stocks

As fuel and energy costs increase around the world and especially in the United States, the pursuit for renewable energy resources has become even...

Stocks

Kellogg, one of the largest providers of packaged foods in the United States and the world, has maintained a generally consolidated control of all...