China’s richest people lost $7 billion a day what happened

(ORDO NEWS) — After the Congress of the Communist Party of China, the fortune of Chinese billionaires decreased by $6.9 billion.

All because of the re-election of a new party chairman and investors’ fears that the authorities will continue to put pressure on private business and wealthy people in China.

How the status of Chinese billionaires has changed

According to Forbes Real-Time, China’s richest man, Zhong Shanshan, bottled water maker Nongfu Spring, lost $2 billion a day.

His fortune has dwindled to $59.8 billion. By the way, the former richest billionaire in China, Jack Ma, lost only 1 billion a day.

Tencent founder Ma Huateng’s net worth fell $2.4 billion to $24 billion. The rest of the top 10 richest billionaires in China lost just under $1 billion.

The main reason for the decline in the fortunes of Chinese billionaires was due to the fact that foreigners were actively selling securities, and the yuan fell to its lowest level since January 2008.

Why did the party congress affect the fortune of billionaires

During the congress, not only was Xi Jinping re-elected as head of the party for the third time, but the composition of the Communist Party Politburo also changed.

Bloomberg reports that Xi Jinping gave new positions to his associates, which caused concern among investors.

They worry that the authorities will continue to pressure private businesses and wealthy people in China.

But it should also be emphasized that even before the party congress and Xi Jinping’s re-election, the situation for billionaires was not easy.

Also, Xi Jinping’s re-election did not come as a surprise to anyone, but the approach of loyal supporters deviates from the collective governance model that distinguished China before.

According to Bloomberg analysts, this means that now fewer people will be able to deny the actions of Xi Jinping.

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