On Wednesday, U.S.-listed Chinese stocks surged, far outpacing the broader market. Shares of the 10 largest Chinese-based companies listed in New York gained a total of $70 billion in market capitalization. This surge was largely attributed to the Chinese government approving a capital increase proposal from Ant Group, the financial technology giant led by billionaire Jack Ma. The record-setting initial public offering was cancelled by Beijing in 2020 as the country clamped down on its growing technology sector.
Shares of Alibaba, one-third owner of Ant Group, skyrocketed by 13%, adding $40 billion to its market cap. Other e-commerce companies, Pinduoduo and JD.com, gained 8% and 15%, respectively. U.S. stock indexes, including the Dow Jones Industrial Average, S&P 500, and tech-heavy Nasdaq, each added less than 0.7%.
Jack Ma's personal fortune also grew, jumping 5% Wednesday following Alibaba’s stock surge. This made him the 59th-wealthiest person in the world. Pinduoduo founder Colin Zheng Huang's fortune also rose, increasing by $2.3 billion. Huang’s fortune swelled by $11.1 billion last year, making him the third-largest billionaire gainer of 2022. Bernard Arnault, the world’s wealthiest man, added $8.9 billion to his fortune Wednesday, the largest daily gain of any billionaire on the planet, after shares of his luxury firm LVMH jumped 5%.
Overall, the surge in Chinese stocks listed in the U.S. and the growth in wealth of several Chinese billionaires can be attributed to the Chinese government's approval of Ant Group's capital increase proposal and the easing of the pandemic restrictions in the country.