Heavy losses in the fortunes of Chinese billionaires after a government reshuffle and a third term

China’s richest businessman lost more than $ 9 billion to a massive stock market sell-off that followed Xi Jinping’s third term win.

Tencent co-founder Bonnie Ma and China’s richest person Zhong Shanshan lost more than $ 2 billion on Monday due to the collapse of their companies’ shares after Communist Party leadership was reshuffled, according to Bloomberg. Billionaires Index, as seen by Al Arabiya.net.

Alibaba Group Holdings’ Jack Ma, Baidu’s Robin Lee, and JD.com’s Richard Liu were not included, as their companies are listed primarily on US markets, although shares fell in pre-market trading.

Xi’s move to put his closest ally at the top of the leadership raises concerns that China’s crackdown on private wealth and corporations will continue. An index that tracks Hong Kong-listed Chinese stocks fell the most in history the day after the Communist Party Congress since its inception in 1994, foreigners sold a lot record shares across the city’s trade links, while the yuan weakened to its lowest level since January 2008.

“Today’s decline reflects fragile investor sentiment,” Kenny Wen, KGI Asia’s head of investment strategy in Hong Kong, told Bloomberg. “People are just trying to resist and seek further repercussions on the Chinese economy after the government reshuffle.”

Even before Monday’s recession, China’s richest people were well on their way to their worst year in a decade, as Xi’s tough COVID policies hit the economy. At the end of last Friday, the wealth of 76 Chinese billionaires amounted to $ 783 billion, and they are among the 500 richest people in the world, compared to 79 businessmen with a net worth of $ 1.1 trillion at the end. last year, according to the Bloomberg Wealth Index.

While Xi’s reappointment to an unprecedented third term came as no surprise, his promotion of loyalists breaks with the collective leadership model that supported the nation’s rise, with fewer top votes to put in discussing its policies.

The move indicates that China is likely to keep its tough approach to Covid, which has hurt the economy. A series of data released Monday after last week’s surprise delays also showed a mixed recovery and economists remain concerned about future growth.

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