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CEOWORLD magazine - Latest - Money and Wealth - Wealth Wipeout of $16 Billion: China’s Top Billionaires Hit Hard by Market Sell-Offs

Banking and FinanceMoney and Wealth

Wealth Wipeout of $16 Billion: China’s Top Billionaires Hit Hard by Market Sell-Offs

A dramatic sell-off in shares of two major Chinese consumer companies wiped out over $16 billion from the fortunes of some of China’s wealthiest individuals, highlighting growing investor anxiety about the health of Asia’s largest economy.

Zhong Shanshan, founder of beverage giant Nongfu Spring and China’s richest person, saw his fortune shrink by about $3 billion after the company’s stock plummeted 10% on August 28 in Hong Kong, reducing his net worth to $46.6 billion.

Meanwhile, Colin Huang, the founder of PDD Holdings, faced a staggering loss of $14.1 billion on Monday as his company’s shares experienced their steepest decline ever following a warning of slower revenue growth. This marked Huang’s largest single-day loss, dropping him to fourth place among China’s wealthiest after briefly holding the top spot earlier this month. The decline continued into Tuesday, with PDD’s shares falling another 4.1%, costing Huang an additional $1.4 billion. Tencent’s Pony Ma has now moved into the second position on the wealth leaderboard.

These sharp declines reflect wavering confidence in the long-term prospects of Chinese consumer demand, where many global companies are struggling with slowing sales. The battle for budget-conscious consumers has led to aggressive price reductions, exemplified by Nongfu’s new purified water priced at under $0.18.

Vey-Sern Ling, managing director at Union Bancaire Privee, remarked that the situation might be worse than it appears if companies like Nongfu and PDD, which cater to supposedly resilient market segments such as beverages and affordable products, are struggling.

Both companies have also faced public relations setbacks this year. Nongfu was embroiled in controversy on Chinese social media following the death of Zong Qinghou, founder of competitor Hangzhou Wahaha Group, with allegations of scheming to gain the upper hand. Additionally, a Hong Kong Consumer Council report questioned the quality of Nongfu’s water, although this was later clarified.

PDD has faced its own challenges, including a protest by hundreds of merchants outside its southern China headquarters over what they claimed were unfair penalties. There is also mounting regulatory scrutiny of its e-commerce platform Temu, as the European Union considers closing a tax loophole on low-cost online imports.

Nongfu reported an 18% decline in revenue from its packaged drinking water segment in the first half of the year, with this category’s contribution to overall revenue dropping to 39% from 48% the previous year. The decline has been attributed to negative public sentiment towards the company and its founder since February.

Li Xuetong, a fund manager at Shenzhen Enjoy Investment Management, noted that both Nongfu and PDD are facing fierce competition. She pointed out that investors who previously valued these companies as leaders in their fields are now reconsidering the security of their market positions amid intense industry rivalry.

 

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CEOWORLD magazine - Latest - Money and Wealth - Wealth Wipeout of $16 Billion: China’s Top Billionaires Hit Hard by Market Sell-Offs
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz