Another day, another billion dollars. With Hong Kong stocks surging to a seven-year high, China’s richest tycoons are approaching $50 billion in gains this year.
Take this week’s frenzy. Tencent Holdings Ltd. increased 6.7 percent since Tuesday, adding $1.2 billion to Chairman Ma Huateng’s net worth, valued at $20.1 billion as of today’s market close in Hong Kong. Wang Jianlin, chairman of Dalian Wanda Group, added about $1.2 billion to his $32.4 billion wealth, thanks to his Hong Kong-listed property unit, and closing in on China’s richest man, Alibaba Group Holding Inc. Chairman Jack Ma.
Billionaire Guo Guangchang’s wealth also gained about $850 million since Tuesday as his flagship investment company Fosun International Ltd. rose 12 percent.
Hong Kong’s benchmark Hang Seng Index gained 6.6 percent in the past two days, as mainland investors flooded into the market using the cross-border bourse link. Data compiled by Bloomberg shows the top 17 Chinese billionaires gained a total of $47.3 billion this year -- and that’s not even counting today’s gains.
For a second straight day, Chinese investors used the entire daily quota to buy Hong Kong stocks through the link. More mainland funds are buying Hong Kong stocks via the exchange link after Chinese authorities made the transfer easier last month. Before the rally this week, Hong Kong shares were trading at their most extreme discounts to mainland peers since 2011.
That’s making Chinese billionaires richer, as most of them have companies listed in Hong Kong.