The Richest Czech Businessman Suffers Heavily as a Gamble on China’s Consumers Backfires

by Montana Fleming

Petr Kellner’s push into China might have meant to increase his fortunes, however, the Czech billionaire has seen a steady drop of shares as world events have pushed China back to the Stone Age financially. Kellner’s fortunes have dipped $2.5 billion since January as his plans for expansion remain on hold for the foreseeable future.

In November of last year, Kellner’s Home Credit NV scrapped a plan for a $11.5 trillion IPO in Hong Kong even as investors demanded a lower evaluation. However, with China’s economy being drained and pushed back on all fronts due to the international backlash, Kellner saw a plunge of $1.5 billion in the value of his stake. It is now estimated at a value of $2.8 billion overall bringing down Kellner’s personal net worth to $10 billion.

“The coronavirus pandemic unfortunately won’t remain without a negative effect on the Home Credit business,” company spokesman Milan Tomanek said in an email. “Quantifying the impact at this moment, when the pandemic hasn’t ended yet would be speculation.”

 

With China’s economy reopening, the actual impacts of the lockdown have been revealed exponentially with financial institutions dropping their public spending capacity more than 20% to 7.8 trillion yuan ($1.1 trillion) as compared to April 19.

As China passed a law that is bringing its unification with Hong Kong on a truncated timetable, the United States announced that they will be cutting off the special ties to the estranged country. With the special economic ties that Hong Kong enjoyed as a sovereign state, business investors could enjoy a backdoor to China’s finances. However, with the States pulling their special agreement abruptly, many investors will find legal and physical intervention in order to recoup their initial investments, much less their profit.

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