{"id":122798,"date":"2024-08-28T05:11:33","date_gmt":"2024-08-28T05:11:33","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/08\/28\/chinas-two-richest-people-lose-billions-in-consumer-stock-rout-times-of-india\/"},"modified":"2024-08-28T05:11:33","modified_gmt":"2024-08-28T05:11:33","slug":"chinas-two-richest-people-lose-billions-in-consumer-stock-rout-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/08\/28\/chinas-two-richest-people-lose-billions-in-consumer-stock-rout-times-of-india\/","title":{"rendered":"China\u2019s two richest people lose billions in consumer stock rout – Times of India"},"content":{"rendered":"
\"China\u2019s<\/div>\n
Record-breaking stock selloffs in two of China\u2019s biggest consumer companies erased more than $18 billion from the fortunes of the nation\u2019s richest people, underscoring deepening investor concern over the health of Asia\u2019s biggest economy.
China\u2019s wealthiest person, Nongfu Spring Co founder Zhong Shanshan, lost some $4 billion as the beverage giant\u2019s shares fell as much as 12.9% Wednesday in Hong Kong, according to the Bloomberg Billionaires Index, leaving him with a total of $45.5 billion.
Meanwhile, PDD Holdings Inc founder Colin Huang\u2019s wealth tumbled by $14.1 billion on Monday, as shares fell the most in company history after it warned revenue growth would inevitably dwindle. The retreat was Huang\u2019s biggest one-day loss ever, dropping him to fourth on Bloomberg\u2019s ranking after briefly holding the top spot earlier this month.
The slide continued Tuesday, when the Temu owner\u2019s shares dropped a further 4.1%, knocking another $1.4 billion from Huang\u2019s riches. Tencent Holdings Ltd. co-founder Pony Ma now holds the second spot on Bloomberg\u2019s tracker.
Their respective wealth plunges underscore shaky longer-term confidence in Chinese consumption, where many of the world\u2019s biggest businesses are facing a slowdown in demand as the economy falters. The battle to lure increasingly frugal shoppers has led foreign and local companies to engage in price wars to capture whatever they can of a dwindling pie \u2014 including a new purified water product sold by Nongfu for under 1 yuan ($0.14).
\u201cChina\u2019s economy is probably worse than people think if consumer companies like Nongfu and PDD are not doing well,\u201d said Vey-Sern Ling, managing director at Union Bancaire Privee. \u201cThey represent segments where demand is supposed to be resilient \u2014 drinks and value-for-money products.\u201d
Both firms have also battled a series of public relations challenges this year. Nongfu was barraged with scrutiny on Chinese social media after the death of Zong Qinghou \u2014 founder of key rival Hangzhou Wahaha Group Co. \u2014 with some users recapping what they alleged were tricks Nongfu had used to gain an advantage over its competitor. Months later, a report from Hong Kong\u2019s Consumer Council questioned the quality of Nongfu\u2019s water, which it later clarified.
PDD faced backlash last month as hundreds of merchants staged a rally outside its southern China offices, protesting what they called unfair penalties increasingly being levied by the company. And there\u2019s growing regulatory scrutiny of its e-commerce giant Temu, with the European Union working on a proposal to close an import tax loophole for cheap goods bought online, a move that would impact Chinese retailers.
Nongfu\u2019s revenue from its packaged drinking water products fell by 18% over the first half, with the segment\u2019s proportion of total revenue dropping to about 39%, from around 48% last year. The decline was attributed to negative public opinion toward the company and Zhong since the end of February.
Nongfu and PDD \u201chave competitors eyeing their market share aggressively,\u201d said Li Xuetong, fund manager at Shenzhen Enjoy Investment Management Co. \u201cOne thing for certain is that the two firms, which investors were happy to value as the leaders in their respective fields, are not being spared from breakneck competition as seen in other industries \u2014 and investors seem to be rethinking how secure their perch is.\u201d<\/div>\n