Evergrande effect: stocks fall, billionaires post losses of $ 135 billion

A global decline in stock markets caused by the fears of investors around Evergrande Group from china hit the world’s biggest fortunes on Monday, causing the world’s 500 richest people to lose a total of $ 135 billion.

Tesla Inc.’s Elon Musk led the declines, with his net worth falling from $ 7.2 billion to $ 198 billion., according to Bloomberg Billionaires Index. Second, Jeff Bezos, founder of Seattle-based Amazon.com Inc., lost $ 5.6 billion, reducing his fortune to $ 194.2 billion.

The Evergrande crisis, China’s most indebted real estate developer, and regulatory repression in this sector has fueled fears of possible financial contagion. Markets have also reacted to US Treasury Secretary Janet Yellen’s warning of possible economic disaster if lawmakers do not raise the debt ceiling.

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The S&P 500 was down 1.7%, the biggest drop since May.

The founder and president of Evergrande, Hui Ka Yan, continued his precipitous fall on the wealth list of Bloomberg, while the company’s shares fell to their lowest level in a decade. His fortune is now $ 7.3 billion, up from a peak of $ 42 billion in 2017.

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Hong Kong’s biggest real estate developers led some of the biggest declines in the Hong Kong Hang Seng Index. Real estate billionaires Lee Shau-Kee, Yang Huiyan, Li Ka-Shing and Henry Cheng all reported losses of more than $ 6 billion combined.

Colin Huang, founder of the e-commerce platform Pinduo inc., has lost US $ 29.4 billion so far this year, more than anyone in China, including the $ 2.3 billion on Monday.