Jack Ma Uncrowned as Zhong Shanshan Becomes Wealthiest in China

Sep 25, 2020 | Billionaire News

Zhong Shanshan

Zhong Shanshan, the owner of the foremost important beverage maker and vaccine magnate, has unseated topping Tencent’s Pony Ma and Alibaba founder Jack Ma, to become the China wealthiest person with over $2 billion above Jack Ma.

This was after a spate in his company’s share price boosted his fortune to almost $60 billion. This marks massive losses among the elected world richest. Zhong Shanshan, net worth increased to $58.7 billion, thereby making him richer than Mr Ma. His fortune fell back to $56.7 billion after shares in e-commerce group Alibaba fell 0.9 per cent on Wednesday.

Mr Zhong commenced his business career with mushroom farming and the sale of relationship dysfunction pills.

He is now the 17th wealthiest person in the worldwide wealth list and Asia’s second-richest individual, behind Mukesh Ambani, also tracking Larry Page, Google co-founder with about $10 billion. Mr Zhong Shanshan fortune has tripled in the beginning this month following the listing of Nongfu in Hong Kong’s stock exchange.

The company shares, during which Mr Zhong features a stake of four-fifths, have soared above 80 per cent. He is a maker of COVID 19 test kits and Hepatitis vaccines. He also controls Wantai Biological Pharmacy Enterprise Co, whose shares price has soared by quite 14 times since it listed in Shangai in April.

Mr Zhong Shanhan beverage company, Nongfu Spring, known to be the absolute best place in China’s packaged beverage market, on Tuesday, has raised about $1.1 billion in its initial public offering in Hong Kong.

That made it among the foremost essential IPOs for the stock market thus far this year. At Hong Kong dollars ($5.14) the shares surged 85% from the offering price to open at 39:80 before closing about 53.9% higher at 33:10 Hong Kong dollars ($4.27) a share. The stock traded about 2.5% higher on Wednesday. Zhong Shanshan saw his material possession and resources on paper as he owns 84.4% of Nongfu

On Tuesday morning, Mr Zhong had a total net worth of approximately $59 billion, which is base on a price of 39.20 per share in Hong Kong dollars and counting his other properties.

At that point, Mr Zhong was momentarily the wealthiest person in China, surpassing the $51 billion net worth of Alibaba founder Jack Ma and $57 billion of Tencent’s Pony Ma. Zhong was on track to be the third wealthiest man in China, leading the IPO. The flip side of Mr Zhong Shanshan monolithic wealth is that public belongings of Nongfu account for less than 4%, according to the company’s prospectus.

Compared with about 30 for global drinks peers Contrarian are giving extreme rating [which] we haven’t seen in the past to Chinese Consumer stocks like Nongfu Spring.” like Coca-Cola, Nongfu Spring is selling their commodities at a good ratio of more than 70. Following a decline due to coronavirus in the first half of the year, Mr Hu warned that investors’ interest in Nongfu Spring might fade if the company sales do not recover sharply. An economist during an interview said that “If there is a dull commercial execution, the extreme rating won’t be sustainable,”

The company warned in a filling that Shareholders and prospective investors should exercise extreme caveat, “this was because of the eminent concentration of shareholding in a small number of Shareholders.” Shareholders and prospective investors should take note that the price of the shares could move significantly even with a little number of shares traded, and when dealing in the Shares.

An economist while being interviewed said that “What resulted to the drastic rise of wealth of Mr Zhong Shanshan as known as The Lone Wolf in the nation’s business enterprise was the enthusiasm the investor had towards the country’s consumer industry,”

Mr Zhong was nicknamed “Lone Wolf” for his shunning of politics and snobby business groups; the sector is of import growth driver in the world’s second-biggest economy. Zhong’s fortune in 2020 has increased $51.9 billion, more than anyone in the world except Amazon.com Inc.’s Jeff Bezos and Tesla Inc.’s Elon Musk. On Wednesday, both suffered sharp declines as tech stocks stumbled and Tesla plunged after its “Battery Day” event fell short of outlook.

Mr Zhong Shanshan has surpassed the Alibaba founder Jack Ma as China wealthiest. The Tech magnate may be crowned the richest again a position which he has held for the past few years after his company Alibaba went general in the U.S.

Ant Group’s IPO next month is self-collected to boost his fortune, with his stake estimated at $28 billion if the company achieves the $250 billion valuations, people familiar with the matter have said it is targeting.

Alibaba’s Mr Jack Ma could get an early opportunity to re-take his position owing to the upcoming initial public offering of Ant Group in Hong Kong and Shangai. The financial technology company expects to have to sell a minimal of 10 per cent of its shares [in which Mr Jack Ma has a 9 per cent stake] this year and procure a market valuation up to $300 billion.

The overall public offering of a beverage giant has propelled its founder into the ranks of the three wealthiest people in China, thanks to an ownership structure that reflects some potential risks of investing in Chinese companies.

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