A global collapse in stock markets sparked by concerns over China Evergrande Group hit the world’s biggest fortunes on Monday.
Due to this, the richest 500 people have lost a combined $135 billion. This includes Tesla Inc.’s Elon Musk as his world-leading net worth fell $7.2 billion to $198 billion. In addition, No. 2 Jeff Bezos, the founder of Amazon Inc., lost $5.6 billion, trimming his fortune to $194.2 billion.
Evergrande, China’s most indebted developer reported a cash crunch on Monday. Moreover, there has been a regulatory crackdown on the nation’s real estate market.
This has stoked concerns about possible financial contagion. Markets also reacted to U.S. Treasury Secretary Janet Yellen’s warning of economic catastrophe if lawmakers fail to raise the debt ceiling. Furthermore, the S&P 500 tumbled 1.7%, the most since May.
Evergrande founder and Chairman Hui Ka Yan continued his drop in Bloomberg’s wealth ranking as the company’s shares fell to their lowest in a decade. His fortune now stands at $7.3 billion, down from a peak of $42 billion in 2017.
Hong Kong’s biggest property developers led some of the sharpest losses on Hong Kong’s Hang Seng Index. Property billionaires Lee Shau-Kee, Yang Huiyan, Li Ka-Shing, and Henry Cheng trimmed more than $6 billion combined.
Colin Huang, the founder of e-commerce platform Pinduoduo Inc., has lost $29.4 billion this year. This loss is more than anyone else in China, including $2.3 billion on Monday.
The impact has also been made in India. the Nifty 50 logged its worst session since July and moreover, Indian shares slid 1% on Monday.