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The crash has struck again, the world stock markets, triggering a Chinese spark this time, raise fears the Chinese group Evergrande, the throne of the biggest fortunes in the world. Most of those losses were accounted for, data showed Monday.
According to the “Business Standard” site, the richest 500 people in the world have lost a total of 135 billion dollars, of their financial investments, including stocks, bonds and various instruments, following the violent reaction of the bearish market to the Evergrande crisis.
Tesla founder American billionaire Elon Musk topped the losers list, with his net worth plummeting from $ 7.2 billion to $ 198 billion, according to the Bloomberg Billionaires Index.
In second place came the huge loser, the founder of Amazon, the American billionaire Jeff Bezos, who lost $ 5.6 billion, reducing his fortune to $ 194.2 billion.
The liquidity crisis in Evergrande, China’s largest real estate developer, and regulatory crackdown on the country’s real estate market have raised fears of potential financial contagion.
Markets have 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.
Evergrande founder and chairman of the board of directors, Chinese billionaire Hui Ka Yan, has fallen on Bloomberg’s list of the rich as the company’s shares drop to their lowest level in a decade .
His fortune now stands at $ 7.3 billion, up from a financial peak of $ 42 billion in 2017.
Bank of China Tower in Shanghai on a cloudy rainy day
The shares of the largest real estate 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 have lost more than $ 6 billion in total.
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 pessimistic report on its financial health, saying it faced enormous cash pressure and had hired advisers to look into what could be one of the biggest debt restructurings in the world. country.
Evergrande has over $ 300 billion in liabilities, half of which includes 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 downturn as a stimulating opportunity to buy quality stocks.”
“There are few opportunities for Evergrande’s systemic risk,” said Shujin Chen, analyst at Jefferies Financial Group, Inc., and advises investors to buy bank stocks when it goes down. Among Chen’s top picks in this area is the China Construction Bank. Corp and Ningbo Co, from what I mentioned in a note.
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