World’S Richest Lose $135 Bn In A Day Over Evergrande Crisis; Elon Musk Worst Affected

World’S Richest Lose $135 Bn In A Day Over Evergrande Crisis; Elon Musk Worst Affected

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The richest 500 people in the world lost a combined $135 billion on September 20, with stock markets around the world hit over concerns about China’s indebted real estate giant Evergrande.

Tesla boss Elon Musk saw his net worth plummet by the biggest margin — $7.2 billion — to $198 billion. Whereas Amazon founder Jeff Bezos’ wealth dipped by $5.6 billion, to $194.2 billion, according to Bloomberg Billionaires Index.

Another Lehman moment?

While experts say the cash crunch at China’s Evergrande group is unlikely to cascade into something like the 2008 Lehman Brothers crash, Uday Kotak, Chief Executive Officer and Founder of Kotak Mahindra Bank, tweeted, “Evergrande seems like China’s Lehman moment.”

Fears about a possible financial contagion were stoked in the stock markets around the world following a cash crunch being reported by the Evergrande group and a regulatory crackdown on the nation’s real estate market. The rout in markets across the globe was also a reaction to the US Treasury Secretary Janet Yellen’s warning about an economic catastrophe if lawmakers failed to raise the debt ceiling. The S&P 500 tumbled 1.7 percent, the most since May.

Wealth of China’s richest plummets

Many of China’s richest have seen their fortunes nosedive. Evergrande Founder and Chairman Hui Ka Yan saw his company’s shares fall to their lowest in a decade. His fortunes, which hit a peak of $42 billion in 2017, crashed to $7.3 billion.

Property developers in Hong Kong suffered massive losses on Hong Kong’s Hang Seng Index. Property billionaires Lee Shau-Kee, Yang Huiyan, Li Ka-Shing and Henry Cheng lost more than $6 billion combined.

E-commerce platform Pinduoduo Inc Founder Colin Huang lost $29.4 billion this year alone, including the $2.3 billion hit he took on September 20, losing more than anyone else in China.

(Edited by : Shoma Bhattacharjee)

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