Wang Jianlin, Asia's richest businessman lost $3.6 billion during a single day. While his loss is certainly huge, other investors collectively lost $124 billion as China's stock market took a nasty fall.
Jianlin, who recently overtook Hong Kong billionaire Li Ka-Shing as Asia's richest man, lost $2 billion as the share value of Dalian Wanda Commercial Properties Co., slid 17 percent. He lost another $1 billion from his Shenzhen-traded Wanda Cinema Line Co., which fell by the exchange-exposed limit of 10 percent, reported MSN. The remaining losses were from his multi-million dollar stakes in multiple other private companies, as per data compiled by Bloomberg. The businessman may have lost in a single day what the majority of the world's population doesn't earn in a lifetime, but his fortune still stands at $31.2 billion.
While Wang Jianlin's loss was the most severe, the world's 400 richest people, who had vested interest in China's stock market, collectively lost about $124 billion in a single disastrous day of trading. About 24 businessmen lost more than a $1 billion each as the global selloff pressured the Standard & Poor's 500 Index into its first massive correction.
After Wang Jianlin, Bill Gates was the one who lost the most. Gates witnessed $3.2 billion eroding from his wealth. While the ripples of the stock market crash have reached as far as Mexico (Carlos Slim lost $1.6 billion), it was the Asian investors who bore the worst of it, reported CNN. Billionaires in Asia have watched helplessly as a fifth of their collective wealth disappeared over a course of last three months. But they certainly weren't prepared to see $54 billion wiped off in a single day.
The Chinese stock market bled because the country's administration couldn't infuse confidence into the masses and assure them that country's economic slowdown isn't perpetual. The government's methods, some said, seemed half-baked and were perceived by others as short-term solutions that wouldn't help uplift the sagging economy. The Chinese stock market has been sliding for the last three months, but the announcement of the seemingly inadequate stimulus triggered the massive landslide.
Not all had to share the misfortune of Wang Jianlin. Japan emerged as a safe haven for businessmen amidst the economic disaster. While investors like Jianlin lost, people like Japanese businessman Tadashi Yanai gained. Japan's richest person, Yanai's fortune witnessed an upsurge of almost $106 million, reported Stuff.
Though Wang Jianlin has smartly diversified his investments, he may now have to think of additional safeguards to prevent such erosion in the future.
[Image Credit | ChinaFotoPress / Getty Images]