The French magnate shed about $54 billion in wealth amid a painful luxury slump, only to be bumped right back up by a spot—placing him after Elon Musk, Jeff Bezos, and Mark Zuckerberg on the Bloomberg Billionaires Index. 

Both the demotion and the subsequent bounce-back in the ranking were tied to the same reason: China. 

As the owner of about 48% of LVMH, Arnault’s wealth has fluctuated with the crests and troughs in the company’s sales over the years. When people were splurging on luxury purchases amid the pandemic, LVMH’s profits soared, driving Arnault’s fortunes and making him the world’s richest man. Between 2017 and 2021, China’s luxury market tripled in size thanks to the spending appetite of its middle class and overall economic stability. 

However, a subsequent downturn since last year, owing to a lackluster recovery in China demand and reluctant spending from consumers, has hurt LVMH’s earnings. 

The luxury company behind Christian Dior, Loro Piana, and Moet & Chandon has seen its shares drop about 9% since the start of the year. 

But that’s after the share price rally following positive economic news from China, which could indicate the country is turning a corner in sluggish consumer demand. 

Weakness in China has been a cause for concern not just for LVMH but also for its peers such as Kering and Richemont. 

Earlier this week, Beijing announced multibillion-dollar stimulus measures to jumpstart its economy. These included interest rate cuts and additional government support for stock markets and its fraught property sector. The country is also reportedly mulling 1 trillion yuan ($140 billion) in aid to state banks that can, in turn, support businesses and consumers.  

China’s efforts aim to boost its economy, making it the world’s second-largest and a strategically significant market for luxury companies. For LVMH, Asia (excluding Japan) accounted for 31%  of the group’s sales in 2023, and China is a large slice of that pie. 

News from the Politburo has sent European and Asian shares up, as the prospects of an economic rebound could lift up global business. 

Arnault added some $6 billion to his wealth within a day of the news, as the luxury conglomerate’s shares rose. His wealth is currently $183 billion on the Bloomberg Billionaires Index. 

As the founder and CEO of the biggest luxury industry company, Arnault has no plans to leave. His five children are being groomed for succession by being involved in different parts of the business, although the patriarch plans to stick around as long as he can. 

That just means Arnault’s wealth will continue to waver. But for now, he’s part of a rare 18-member club of people worth over $100 billion—and France’s only representative at that.