China's bailout policy triggers LVMH and Hermès to rise nearly 10%

　　Recently, the People's Bank of China has launched a series of stimulus policies aimed at boosting the domestic economy. These measures have boosted market confidence in China's economic recovery, boosted optimism in the luxury goods market, and prompted luxury concept stocks to rise across the board.

　　Image source: ifeng

　　In the US stock market, the shares of LVMH Group and Hermès both rose nearly 10% in early trading. The Chinese government's active economic stimulus measures have greatly increased the wealth of LVMH founder and chairperson Bernard Arnault. According to the Bloomberg Billionaires Index, his net worth soared 17 billion US dollars (about 132.60 billion Hong Kong dollars) to 201 billion US dollars (about 1.56 trillion Hong Kong dollars) on Thursday, which is the third largest single-day wealth growth in his history and the most eye-catching performance among the world's 100 richest people.

　　Previously, due to weak mainland consumption, Arnault's wealth had shrunk. With the implementation of economic stimulus policies, LVMH Group's stock price rose by 9.9%, and Arnault's assets rose accordingly. According to the Bloomberg Billionaires Index, the 75-year-old Arnault is currently ranked fourth on the rich list, second only to Tesla founder Musk, Amazon founder Bezos, and Meta founder Zhu Keboge. The three of them have a net worth of 268 billion, 214 billion, and 202 billion dollars respectively. Arnault and Zhu Keboge are only 1 billion dollars apart.

　　Due to the downturn in the luxury goods market, Arnault lost his position as the world's richest person in July this year, and his net worth has shrunk significantly by $10.80 billion to $196.70 billion. Bloomberg reported that Arnault's wealth is almost entirely related to his 48% equity stake in LVMH Group. Since the beginning of this year, LVMH Group's stock price has fallen by 7.5%, mainly due to weak demand in China and consumers' unwillingness to spend, which has affected LVMH's profits.