Market Round Up: That Was The Week That Was 😖 China Rich List 💰
1. That was the week that was
Some week! Markets everywhere slid and even the S&P 500 saw its longest decline since 2016. With the VIX volatility index surging ahead of all the selloff there’s a hint of a further meltdown, ruining chances of a restful weekend for investors.
With stocks taking a battering from earnings worries and rising government bond yields, it’s looking like much more than merely a market correction. Going forward, with the Fed’s normalisation process firmly on track, consumer sentiment could start to pare back as money in their pockets begins to tighten. Meanwhile the spectre of a protracted trade war with China may also weigh more prominently on expectations of future economic conditions. And with credit agency, Moody’s, triple A rating likely to stand firm in its update today, some will be looking for any hint
that President Trump’s government spend unbuckling is threatening the country’s future credit health.
Elsewhere, every market is wrapping itself as best it can in order to avoid catching the fiscal cold! So far, contagion is proving impossible to avoid!
2. China rich list not so rich
No coincidence, but the typhoon season has seen many Chinese tycoons fall off the latest Hurun Rich List. In fact the blame is being placed squarely on the Sino-U.S. spat.
According to the latest report, 456 businessmen dropped out of a total of 2,130 a year ago. That’s a 21% fallout. The list includes people with more than 2 billion yuan ($290 million) in net worth. Still, the number of Chinese making the rich list is up nearly 90% from five years ago. When the rich list was first started there were only eight people with more than 2 billion yuan on the list.
Whilst the number of rich Chinese has grown overall, evidence shows that wealth has become more concentrated with the top 10 rich people accounting for 10% of the overall wealth. Top of the list after a four year absence is Alibaba’s Jack Ma with a net worth of $39 billion – up $10 billion thanks to the rise in valuation of his Ant Financial payments business.