Jack Ma, founder and executive chairman of China's Alibaba Group, speaks in front of a picture of SoftBank's human-like robot named 'pepper' during a news conference in Chiba
Reuters

KEY POINTS

  • The war in Ukraine and the COVID-19 pandemic lockdowns hit Ma's wealth
  • The total wealth of China's richest people dropped to $3.5 trillion, says a report
  • Other billionaires such as Pony Ma also saw their net worth tumble between 2021 and 2022

Jack Ma, one of the founders of the world's largest e-commerce business Alibaba Group, saw his net worth plunge more than 50% between 2021 and 2022, according to a billionaire's index.

The Alibaba founder had a net worth of $48.4 billion in 2021. However, the numbers plunged by 57% in 2022, bringing his net worth down to $20.7 billion as of Wednesday, according to Forbes.

Ma's plunge in wealth is caused by a combination of Russia's unprovoked invasion of Ukraine and the COVID-19 curbs, both of which slowed down the Chinese economy and heavily impacted tech prices, as per the Business Insider's Markets.

In addition to the war in Ukraine and the COVID-19 pandemic, Ma is also planning to cede control of Ant Group, an affiliate of Alibaba Group in which he owns a 10% stake, as first reported by The Wall Street Journal. Ant Group's valuation fell by 70% after it was hit by China's financial regulators in late 2020.

The outlet noted that the shift came after China's crackdown on the tech industry. Chinese tech giants, including Alibaba, were accused of mistreating users and engaging in false advertisements. Beijing has since published rules that tighten oversight of the algorithms that tech companies use to target customers.

Ma is not the only Chinese billionaire to see his wealth tumble between 2021 to 2022. Zhang Yiming, the founder of ByteDance and developer of video sharing platform TikTok, saw his net worth drop by 28% to $35 billion, according to Markets Insider.

Ma Huateng, also known as Pony Ma, also saw his net worth drop by nearly 60% from $65.8 billion to $26.3 billion.

According to the Hurun China Rich List 2022 published Tuesday, the total wealth of the richest people in China dropped to $3.5 trillion, signifying an 18% year-on-year plunge.

Read more

"This year has seen the biggest fall in the Hurun China Rich List of the last 24 years," Rupert Hoogewerf, the list's chief researcher, said in a statement.

Over the past year, the Shanghai Composite Index has also lost 12.6% while Hong Kong's Hang Send Index plunged by 33%.

A report that Alibaba founder Jack Ma had travelled to Europe raised hopes that China's crackdown on the tech giant may have run its course
A report that Alibaba founder Jack Ma had travelled to Europe raised hopes that China's crackdown on the tech giant may have run its course AFP / Bertrand GUAY