The crash struck again, global stock markets, sparking a Chinese spark this time, fears about the Chinese Evergrande Group, the throne of the largest fortunes in the world. Most of these losses were counted, according to data on Monday.
According to the “Business Standard” website, the 500 richest people in the world have lost a total of 135 billion dollars, from their financial investments, including stocks, bonds, and various instruments. Markets’ violent reaction down to the Evergrande crisis.
American billionaire founder of Tesla, Elon Musk, topped the list of losers, as his net worth fell by $7.2 billion to $198 billion, according to the Bloomberg Billionaires Index.
In second place, the huge loser came, the founder of Amazon, the American billionaire Jeff Bezos, who lost $ 5.6 billion, reducing his fortune to $ 194.2 billion.
The liquidity crisis at Evergrande, China’s largest real estate developer, and the regulatory crackdown on the country’s property market have raised concerns about potential financial contagion.
Markets also reacted to US Treasury Secretary Janet Yellen’s warning of economic disaster if lawmakers fail to raise the US debt ceiling.
The S&P 500 fell 1.7%, its biggest drop since last May.
The rating of the founder and chairman of the board of Evergrande, the Chinese billionaire, Hui Ka Yan, fell on the “Bloomberg” list of the rich, as the company’s shares fell to their lowest levels in a decade.
His fortune is now $7.3 billion, down from a financial peak of $42 billion in 2017.
Bank of China Tower in Shanghai on a cloudy rainy day
Shares of the largest property developers, whose companies are listed on the Hong Kong Stock Exchange, suffered one of the biggest losses on the Hang Seng Index.
Billionaires Li Shaoqi, Yang Huiyan, Li Ka-shing, and Henry Cheng lost more than $6 billion combined.
Colin Huang, founder of e-commerce platform Pinduoduo Inc., lost about $29.4 billion this year, more than any other wealthy person in China, including $2.3 billion on Monday.
Last week, Evergrande released a downbeat report on its financial health, saying it was facing massive liquidity pressures and had hired advisors to look into what could be one of the largest debt restructurings in the country.
Evergrande has more than $300 billion in liabilities, half of which include payments to contractors.
Citigroup’s analysis of banks’ exposure to high-risk developer loans indicates that credit risk is highest for China Minsheng Banking Corp., Ping An Bank Co. and China Everbright Bank Co.
Analysts wrote that Bank of Nanjing Co, Chongqing Rural Commercial Bank Co and China Postal Savings Bank are less exposed and “we will see any pullback as a boosting opportunity to buy quality stocks.”
“There is little chance of systemic risk from Evergrande,” Shujin Chen, an analyst at Jefferies Financial Group, Inc., sees it, and advises investors to buy bank shares on dips, and among Chen’s top picks in the sector are China Construction Bank Corp and Ningbo Co, according to what I mentioned it in a note.