Record-breaking stock selloffs in two major Chinese consumer companies have wiped out over $16 billion from the wealth of the nation’s richest individuals, highlighting growing concerns about China’s economy, Bloomberg reports.
Nongfu Spring Co. founder Zhong Shanshan saw his wealth drop by $3 billion after the company’s shares fell 10% in Hong Kong, reducing his net worth to $46.6 billion. PDD Holdings Inc. founder Colin Huang experienced a $14.1 billion loss on Monday, following a record drop in shares due to revenue growth warnings. Huang’s wealth continued to decline with a further 4.1% drop in shares on Tuesday, leading to a total loss of $15.5 billion.
The selloffs reflect deeper issues in Chinese consumer markets, where major companies like Nongfu and PDD are struggling despite their role in essential and value-for-money sectors. Nongfu Spring’s revenue from packaged water fell by 18% in the first half of the year and is facing quality concerns. Meanwhile, PDD Holdings faced backlash from merchants and increasing regulatory scrutiny on its e-commerce platform Temu.
