2nd October 2024 – (Beijing) China’s economic landscape has undergone a dramatic transformation following the introduction of the country’s largest stimulus package in recent years, designed to reinvigorate its flagging economic growth. This fiscal boost has resulted in a significant wealth increase for the nation’s richest individuals, with the fortunes of the 54 Chinese nationals on the Bloomberg Billionaires Index swelling by approximately 19% in the week ending September 30. This marks the largest week-long wealth gain recorded since the index began tracking the world’s wealthiest 500 people in 2016.
The collective wealth of these tycoons increased by nearly $130 billion during this period, reflecting the strong impact of the stimulus on high net worth individuals. Chinese stocks have also seen a dramatic uptick, surging more than 25% since the measures were announced. These measures included interest rate cuts, lowered reserve requirements for banks, and relaxed regulations on home purchases, propelling the benchmark CSI 300 Index to rise for nine consecutive days and culminate in an 8.5% jump on Monday, the most significant rise since 2008.
The resurgence of wealth comes after a challenging period for China’s richest. Stringent regulatory crackdowns over the past three years had severely impacted sectors like real estate and technology, eroding billions from the fortunes of property magnates and diminishing the wealth prospects of bankers and tech workers alike. Before this recovery, a rout in consumer stocks had dethroned Nongfu Spring Co. founder Zhong Shanshan from his position as China’s richest person, a title he had maintained for over three years. However, the recent market rally has reinstated Zhong at the top of the wealth charts.
Among the notable beneficiaries of the stock market rebound is Tencent Holdings Ltd. co-founder Pony Ma, whose net worth has surged almost 50% this year to $51 billion, bolstered by the release of the blockbuster game Black Myth: Wukong. Jack Ma, co-founder of Alibaba Group Holding Ltd., has also seen his fortune swell to more than $36 billion.
The stimulus has not only benefitted Chinese moguls but also global billionaires like Bernard Arnault of LVMH, who experienced a $26 billion increase in wealth last week. His company’s shares climbed sharply as investors bet on a resurgence of Chinese consumer spending in the luxury sector as the economy shows signs of recovery.
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