The LVMH CEO had a mildly painful year as he fell to fifth place among the world’s wealthiest people. 

But that demotion was short-lived. A few weeks ago, when China announced a fresh bout of stimulus measures, Arnault jumped back up to the fourth and, eventually, the third position on the Bloomberg Billionaires Index.    

This week, the French magnate has shed as much as $13 billion in wealth. This time, it concerns the underwhelming reactions to China’s recovery plan. 

When announced late last month, China’s stimulus plan was set to involve a slew of measures, including aid for the country’s stock market and property sector. But follow-up details on those efforts have been scanty, driving a sell-off this week. 

LVMH’s shares dropped as much as 7% following the news on Tuesday, and the value of Arnault’s stake tumbled by about $13 billion, according to Business Insider, before recovering on Wednesday to a narrower loss of $6 billion.

Luxury hasn’t been the only sector to be impacted—commodities stocks, for instance, have also slid as investors remain unsure of what to expect from China’s plans for its economy. 

A much-needed recovery

China is among the most critical markets for the luxury realm. In 2023, when the country was still struggling to shake off the pandemic’s impact on consumer demand, it contributed 16% to the global luxury market, according to Bain & Co. There have been other changes in the dynamic of Chinese shoppers who shop overseas when traveling.  

But the country’s slow revival over the years has hurt the luxury industry across the board (barring a few, like Hermès). That’s trickled down to LVMH and, as a result, Arnault’s personal wealth. 

In the first half of 2024, LVMH’s revenue shrank by 1% to €42 billion, with its wine and spirits segment suffering the most. The company’s shares are down 9% year to date. 

“Chinese consumers’ spend really moves the needle for luxury brands,” Mario Ortelli, managing partner of luxury advisory firm Ortelli&Co, told Fortune in an email. “If and when the Chinese consumer confidence will improve on the back of a better economic environment, it is fair to assume another big jump up of the luxury stocks prices as we have witnessed in the week in which the Chinese stimulus was announced.”

Asia (excluding Japan) accounted for 31% of LVMH’s sales in 2023, and China was a significant part of that. Arnault’s fortunes have long been tied to the French conglomerate, of which he owns about 48%. It’s the biggest name in luxury and one of Europe’s most valuable companies. 

It wasn’t too long ago when Arnault was the world’s richest man, beating the likes of Elon Musk and Jeff Bezos to the top. But fortune in the high-end consumables market has wavered wildly, forcing some players to issue profit warnings and others to revamp their entire business.

Being the fourth-richest man on the planet can’t be too bad. After all, Arnault is still worth $191 billion as of Wednesday. And business is still flourishing at LVMH. The French company has struck high-profile deals in the last few weeks, including an investment in ski jacket maker Moncler, the acquisition of French celebrity magazine Paris Match, and a 10-year sponsorship with Formula One.

Meanwhile, hopes for China’s blockbuster stimulus plans are still high as they could help the country turn a corner and boost the economy. Whether that would take Arnault back to the top of the rich list remains to be seen.