Stock rout costs China's rich­est man $3.6b in one day


China's rich­est man lost $3.6 bil­lion (Dh13.2 bil­lion) in a sin­gle day af­ter global stock mar­kets tanked and Chi­nese mar­kets erased all their gains for the year.

Wang Jian­lin, chair­man and founder of prop­erty and en­ter­tain­ment com­pany Dalian Wanda, lost more than 10 per cent of his to­tal wealth on Mon­day, ac­cord­ing to the Bloomberg Bil­lion­aires In­dex, which tracks the world's rich­est peo­ple.

Shang­hai shares Mon­day col­lapsed by 8.49 per cent, the big­gest daily loss since 2007, spark­ing a vast sell-off in global fi­nan­cial mar­kets as con­cerns mounted that a slow­down in the world's sec­ond-largest econ­omy could hurt global growth. Shang­hai fell an ad­di­tional 7.63 per cent on Tues­day. The close was the low­est since De­cem­ber 15 last year - and be­low the sym­bol­i­cally sig­nif­i­cant 3,000 point mark - while Bloomberg News said it marked the steep­est four-day rout since 1996.

Wang was the big­gest loser at the end of trad­ing on Mon­day, ac­cord­ing to the in­dex, which up­dates at the end of each day. Fig­ures for Tues­day were not im­me­di­ately avail­able.

De­spite the




has in­creased by $6 bil­lion this year. China's sec­ond rich­est per­son Jack Ma, founder of e-com­merce gi­ant Alibaba, lost only $545 mil­lion on Mon­day, ac­cord­ing to the in­dex. Bei­jing launched a huge res­cue pack­age af­ter shares col­lapsed in June, which has in­cluded fund­ing the China Se­cu­ri­ties Fi­nance Corp. to buy stocks on be­half of the gov­ern­ment and bar­ring ma­jor share­hold­ers from selling their stakes.

In the latest move, Bei­jing said on Sun­day it would al­low the state pen­sion fund - which had 3.5 tril­lion yuan ($548 bil­lion) of as­sets at the end of 2014 - to buy stocks.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.