If you’ve been following the crash in the Shanghai and Shenzhen stock market bubble then you will know about the whopping 8.5 percent plunge it took just yesterday. Among the biggest losers are the three wealthiest men in Asia, who lost a combined total of 5.6 billion USD.
In China, stock market speculation is known as “stir-frying stocks” (chao gu piao 炒股票) and investing in stock is about gambling on quick payouts, rather than banking on long term dividends. Hence, Asia’s three richest got a little singed on the wok this week.
Yesterday, Bloomberg announced that 400 of the richest people in the world lost a total of 124 billion USD, with Asia’s billionaires losing a fifth of their wealth.
The third place loser in Asia is the world famous Chinese dot com billionaire Jack Ma, who recently purchased a 1.5 billion USD mansion in Hong Kong. While he lost 546 million USD, however, he probably won’t be mortgaging his HK pad just yet since he’s still worth 29.9 billion USD, according to Bloomberg.
Li Ka-shing, a Hong Kong real-estate giant and business magnate, was hit even worse. His pockets were emptied of 1.5 billion USD, leaving a *measly* 30.4 billion USD to his name. He was Hong Kong’s richest man until earlier this year when he a announced a plan to restructure his immense empire of wealth beginning with big purchases in foreign companies.
And finally, our first place loser is Wang Jianlin, chairman of Dalian Wanda Group, which is China’s largest cinema chain and its largest commercial real estate company combined into one humungous corporation. He lost 2 billion USD in Dalian Wanda Commercial Properties Co. and 1 billion USD on Wanda Cinema Line Co. taking an overall 3.6 billion USD hit. He’s still worth a massive 31.2 billion UD, though, so his days of frying stocks aren’t over quite yet.
Although the richest have seen the biggest losses, it’s mostly small-time investors who have suffered the most this year. Look at this tragedy from the beginning of July. Many blame the government for what is happening in the Shanghai and Shenzhen stock markets after they encouraged investment from inexperienced people in a nationwide state media campaign. The real reason wasn’t to improve China’s stock markets, but to divert investment from property and ease the bubble in China’s real estate market.
by Daniel Cunningham