Chinese stocks saw a steep fall as investors dumped their shares causing the index to crash down.
US officials said on Monday that Russia had asked China for help with its war in Ukraine. This caused a frenzy among investors as they feared backlash against companies and even sanctions. The Hang Seng China Enterprise Index saw its worst fall since 2008 and the Hang Seng Tech Index fell 11%, its worst fall ever.
76 Chinese billionaires, among the world’s 500 richest people, lost nearly $228 billion, 1/5th of their combined wealth from this tumble. The richest tycoons of China lost $53 billion. Zhong Shanshan, the richest man in China, lost $5 billion fromhis net worth while Ma Huateng, the second richest, saw a decline of $3.3 billion causing Zhang Yiming to take his place.
Although china maintains neutrality in the Russia-Ukraine war, China was the first country to come to Russia’s economic aid as it improved wheat imports from Russia by almost 20%. China is trying to maintain a neutral position to avoid conflict. It isn’t trying to jump into Russia to replace the western companies who are departing because the rouble is unstable and any assistance might result in crushing sanctions on it as well.
Highlight by Aman Agarwal.