China faces not only its most prominent problem Evergrande but a range of issues, says leading economist Arthur Kroeber in the New York Times. Shortage of electricity, dealing with its big tech companies and many other in-debted giants offer similar challenges. “The common feature of these crises: All were triggered by government policies,” he writes.
Investors worldwide have been watching developments at Evergrande, China’s second largest real estate company, as it struggled to repay its gargantuan debts. But while the problems are serious, financial analyst Sara Hsu does not expect a full collapse of the giant, she tells the commercial observer.
The annual Hurun Global Rich List counted today more billionaires in China than in the US and India combined, says Rupert Hoogewerf, chairman of the Shanghai-based Hurun Report after its publication on Wednesday, to Caixin. In 2019, China created 182 billionaires, three times the number as those in the U.S., according to the Hurun Report.
Dropping stock markets have caused a bloodshed at the 2018 Hurun Rich List where 11% dropped off the list compared to 2017. But also 219 new faces entered the list, says Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher at their website. Alibaba’s Jack Ma became number one again, pushing out real estate tycoons.
A strong shift from real estate tycoons to IT-giants marks a shift at China’s economy in the ongoing political meetings in Beijing, says author Shaun Rein of The War for China’s Wallet: Profiting from the New World Order to the South China Morning Post. “China is picking five to 10 private technology companies to make them national champions.”
Americans still dominate the 2018 Global Rich List, but with four new billionaires a week, China is moving up very fast, says Hurun Rich List chief researcher Rupert Hoogewerf at the release of the annual overview. Tencent’s CEO Pony Ma is now the highest listed Chinese billionaire at no.15, beating Xu Jiayin of Evergrande and Jack Ma of Alibaba this year.