Wang Jianlin, chairman and founder of property and entertainment company Dalian Wanda, and China's richest man lost $3.6 billion in a single day after global stock markets tanked and Chinese markets erased all their gains for the year.
Shanghai shares collapsed 8.49 per cent on Monday, the biggest daily loss since 2007, sparking a vast sell-off in global financial markets as concerns mounted that a slowdown in the world's second-largest economy could hurt global growth . It fell an additional 7.63 per cent on Tuesday.
According to Bloomberg Billionaires Index, which tracks the world's richest people, Jianlin lost more than 10 per cent of his total wealth on Monday. Jack Ma, China's second-richest person and founder of e-commerce giant Alibaba, lost only $545 million.
Jianlin saw $2 billion wiped out from his total wealth by way of his stake in Dalian Wanda Commercial Properties after the Hong Kong-listed property developer tumbled 17 per cent. He lost nearly $1 billion from his Shenzhen-traded Wanda Cinema Line, which fell by the exchange-exposed limit of 10 per cent on Monday. Jianlin's fortune stood at $31.2 billion after the decline.
Dalian Wanda Group is a commercial real estate powerhouse that controls more than 200 department stores, shopping plazas and luxury hotels. The company owns 9.03 million square metres of investment property, 58 Wanda Shopping Plazas, 15 luxury hotels, 68 cinemas, 57 department stores, and 54 karaoke centres around China.
The Chinese government on Tuesday cut interest rates for the fifth time in nine months in a new effort to shore up slowing economic growth and reassure investors reeling from the two-day rout.
(With inputs from agencies)
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