The stock plunge on Monday made China’s richest lose $53 billion.
As per Bloomberg Billionaires Index, China’s bottled water king Zhong Shanshan led the plunge by losing $5 billion, followed by a drop of $3.3 billion in Tencent Holding Ltd’s.
Tencent Holding Ltd’s Pony Ma now stands third with a net worth of $35.2 billion.
The company fell most since 2011 after facing a record fine for violating anti-money laundering rules.
China’s richest lose billions in one day
Zhong remains the wealthiest man in China, with a net worth of $60.3 billion.
His company Nongfu Spring Co. went public 18 months ago.
However, the stock plunge reduced Nongfu shares by 9.9%, making it the most significant loss since the company went public 18 months ago.
Stock plunge in China’s market
U.S. officials said the Chinese market dipped as Russia asked Beijing for help with the Ukraine war.
Hang Sang Tech Index faced the worst dip since its inception plunging 11%.
The Hang Seng China Enterprises Index tracking shares traded in Hong Kong sank the most since November 2008.
Furthermore, this year 76 Chinese billionaires among the world’s 500 richest people lost $228 billion.
Additionally, as per a report by The Wall Street Journal – the People’s Bank of China discovered its WeChat Pay allowed transferring funds for illicit purposes.
China’s richest affected by the stock plunge
In late 2020 Jack Ma’s fortune surpassed $60 billion before the government started an anti-monopolistic campaign.
The campaign halted the listing of Jack Ma’s Ant Group Co. payments two days before the company was supposed to go public.
However, his current net worth is $34 billion making him No. 4 in the list of China’s richest.
China’s second-richest person Zhang Yiming’s net worth is $44.5 billion.
Furthermore, ByteDance Ltd is a private company making it safe from recent market distortion.
Additionally, Didi Global Inc. shares dipped a record 44% on Friday.
The dip in Didi’s shares occurred due to their suspension of preparations for a Hong Kong IPO.
Didi’s share dip resulted in Cheng Wei losing his billionaire status.
China’s tech shares are struggling since the government issued a campaign against Jack Ma’s company.
Furthermore, rising regulatory scrutiny amid potential delisting from the U.S. caused a severe stock plunge.