Xi’s stimulus blitz adds US$130 billion to coffers of China’s rich

CHINA’S largest stimulus package in years has helped the country’s richest get a whole lot richer.

The collective fortunes of the 54 Chinese people on the Bloomberg Billionaires Index jumped about 19 per cent in the week ended Sep 30, the largest on record for a week-long wealth gain of the country’s tycoons since the ranking started tracking the world’s richest 500 people in 2016. China’s moguls have seen almost US$130 billion of combined wealth added over the period, according to the index.

Chinese stocks surged more than 25 per cent since last Monday (Sep 30) after Beijing unveiled a series of measures to revive moribund growth, including cutting interest rates, lowering reserve requirements for banks and easing rules for home purchases. The benchmark CSI 300 Index rose nine straight days, capped by an 8.5 per cent surge on Monday, the most since 2008.

It’s a sharp reversal from the crackdowns many sectors have endured over the past three years that wiped out billions for the country’s property tycoons and crushed the wealth dreams of bankers and tech workers. Before the recent rally, the consumer stock rout unseated Nongfu Spring founder Zhong Shanshan as China’s richest person, a title he had held for more than three years. Zhong is now back on top of the list.

Tencent Holdings co-founder Pony Ma has been one of the biggest winners from the rebound, as his fortune jumped almost 50 per cent this year to US$51 billion. Tencent has also benefited from the release of the recent blockbuster game Black Myth: Wukong. Among other big gainers: Jack Ma, co-founder of Alibaba Group Holding, who has seen his wealth surge to more than US$36 billion.

Chinese moguls are not the only ones benefiting from the new round of stimulus. Bernard Arnault of LVMH saw a US$26 billion wealth boom last week, as his company’s shares rose on bets that Chinese consumers will return to the luxury market as the economy recovers. BLOOMBERG