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Hurun Research has released Wealth Impact two months after Covid-19 Outbreak , a special report looking into wealth changes of the world’s most successful entrepreneurs in the two months ending March 31. It follows on from the Hurun Global Rich List 2020 , which had a wealth cut-off of January 31.
Stock markets across the world have dropped significantly in the past two months, with the Dow Jones down 21 per cent; India, France, Germany and the UK markets down a quarter; Japan, 18 per cent; and Hong Kong, 10 per cent.
Stock movement
The only major stock market to see a gain was China, up 0.2 per cent. All nine entrepreneurs who saw their wealth rise in the past two months, too, are from China. Whilst the coronavirus has created a surge in demand around the world for medical equipment manufacturers, the lockdown has created a boom in video conferencing for businesses and distance learning for children, as well as, surprisingly, Chinese pork producers, said Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher.
“China has been the relative winner, with its stock markets weathering the virus better than the US and Europe,” added Hoogewerf. Prior to the coronavirus outbreak, the world had 2,816 known (dollar) billionaires. Two months later, that number is now down by 20 per cent, as stock markets across the world have wiped out wealth.
Two of the three largest risers from the Hurun Top 100 were Chinese pork producers: Qin Yinglin and wife Qian Ying of Muyuan added $3 billion to take their wealth to $22 billion. Liu Yonghao of New Hope added $2.5 billion. Alex Xu Hang saw a surge in demand from around the world for ventilator and life support medical equipment manufacturer Mindray, driving his wealth up 26 per cent or $2.8 billion to $13.5 billion.
Most currencies weakened against the dollar, with the British pound down 6.3 per cent; the Indian rupee, 5.2 per cent; the Chinese yuan, 2.3 per cent; and the euro, 0.4 per cent. Only nine per cent of the Hurun Global Top 100 saw their wealth increase; 86 per cent saw their wealth decrease; while for five per cent, it was unchanged.
Global wealth down 12.6 per cent
Hoogewerf said that the last two months have wiped out all the wealth made in the past 2.5 years, with the World’s Top 100 down 12.6 per cent or $408 billion, equivalent to each of the Hurun Top 100 losing $75 million a day.
Anas Rahman Junaid, MD & Chief Researcher, Hurun Report India, said, that India’s top entrepreneurs have been hit by a 26 per cent drop in the stock markets and a 5.2 per cent drop in the value of the rupee compared with the US dollar. “For Mukesh Ambani, it has been a perfect storm, with his wealth down 28 per cent,” Junaid added.
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