China has been amongst the most talked about nation’s when it comes to business and profit-making. For decades together it is tagged as an economy that ruled and dictated the world economic status. Understandably, it is certain to have a growing number of ‘wealthy people‘ in and around. According to a report it ranks along the top 4 wealthiest households; this is notable as it is the most populated country in the world. It is quite the other way round as generally nations with high population are normally facing several troubles on the development track.
China is said to have more than 1 million millionaires which is actually where they started 2015. it has so happened that the country and its financial authorities would be more than happy to forget (but be cautious enough) about the massive slide their economy experienced especially in the last 6 months. This has immensely had a negative impact on the counts of wealth people and companies in the country.
The economy has largely weakened and more than $3.35 trillion washed off in a span of less than seven months. The drop in the Chinese stock markets have exceeded 30% in the last 30 days alone. Being one of the developed countries and also the Superpower of Asia; this fall has had global effect as well as businesses around the world have turned dull.
CHINA has cut its growth target for 2015 to 7%, the least in the last 20 years
However, most of these funds are said to have belonged to small farmers, monthly and daily wage workers and first-time investors. This is why the effects are tremendously hurting as people with limited or no disposable income capacities are vastly affected.
The rise and fall:
According to top financial sources in China there were a total of 22 new billionaires named during the brief market run-up at the beginning of 2015. however, it is being a sorrow story since then as most of them have fallen below the billionaire status. The decrease is so strong that the country’s richest woman Zhou Qunfei the owner of Lens Technologies the firm making glass covers for smartphones and other electronic devices has lost around $4.8 billion as her company shares have come down by more than 1/3rd.
Same is the story with many others. The count of billionaires is currently hanging around 17 which is a shocker for many. It has been a rollercoaster ride especially for a few like Ni Zugen, chairman of the home appliance maker-Kingclear Electronic and Qian Jinbo, the chairman of Red Dragonfly Footwear company. Both these company shares has a near about 50% hike in their prices according to Forbes in early July. But the scenes are different today as Kingclean Electronic has gone down by a whopping 64% and the footwear maker is poorer by 25%.
It seems that China as an economy is learning the lessons learnt by the Americans in early 2000’s.
The pattern of the global markets seems to be still and strong; what it gives , it also takes away.