At the onset of this week, subsequent to Chinese President Xi Jinping securing a third consecutive term, there was an abrupt and forceful downturn in market stocks in Hong Kong. Xi’s contentious tactics in governing the nation and its economy, especially in enforcing the “zero-COVID” strategy that led to continual stringent lockdowns, have instilled apprehension among investors regarding the future stability of the Chinese market.
In direct consequence of this market decline, thirteen of the most affluent figures in China suffered substantial losses in billions from their personal wealth. The impacted individuals encompass prominent personalities such as Pony Ma, the founder of Tencent, Jack Ma, the founder of Alibaba, and Zhong Shanshan, the chairman of Nongfu Spring. Collectively, these prominent figures and others experienced a combined loss of about $12.7 billion.
Apart from the COVID-related lockdowns, Beijing has also imposed progressively tighter regulations and guidelines on the Chinese economy, presumably aiming for “shared prosperity,” wherein the most affluent members of society are expected to allocate a portion of their earnings to those at the bottom of the ladder.
Just in one day, China’s most affluent figures witnessed a combined loss of approximately $13 billion due to a market downturn after President Xi Jinping secured a third term https://t.co/Xe8JzEEatM
— Business Insider (@BusinessInsider) October 25, 2022
“Concerns are looming over the increased influence of President Xi on policy matters, with the newly constituted top leadership team being encompassed by his loyal supporters,” articulated Yeap Jun Rong, a market analyst at the online trading platform IG, in a statement referenced by Business Insider. “This implies a potential continuation of existing economic policies, signifying further reinforcement of China’s firm commitment to the zero-COVID strategy alongside advancing steps towards the ‘shared prosperity’ initiative.”
Image Source: Bloomberg.com
