Temat: 106 BILLIONAIRES ON HURUN RICH LIST

106 BILLIONAIRES ON HURUN RICH LIST

HURUN REPORT RELEASES 9TH ANNIVERSARY EDITION OF CHINA RICH LIST, PROUDLY PRESENTED BY ROYAL SALUTE



 ▪ 106 USD BILLIONAIRES MAKING CHINA HOME TO MORE BILLIONAIRES THAN ANYWHERE OTHER THAN US
 ▪ 26-YEAR OLD YANG HUIYAN CHINA NUMBER ONE WITH US$17.5 BILLION, AFTER FATHER YANG GUOQIANG TRANSFERRED SHARES TO HER
 ▪ TOP TWO ARE WOMEN
 ▪ AVERAGE WEALTH DOUBLES IN PAST YEAR
 ▪ LIST EXPANDED TO 800 INDIVIDUALS UP FROM 500 LAST YEAR


Breaking through the US$10 billion barrier – two women on top
26-year old Yang Huiyan catapulted to the top spot on the back of her 59.5% share of property developer Country Gardens. Yang’s personal fortune of US$17.5 billion makes her the first of two Chinese to break through the US$10 billion mark, and the richest women in Asia.

In second place is fifty-year-old Zhang Yin, last year’s number one, who saw the value of her 72% holding in Nine Dragon Paper triple to US$10 billion following a surge in its share price. The richest self-made woman in the world, Zhang continues to widen the gap with the likes of Giuliana Benetton (co-founder of the Benetton empire), Rosalia Mera (co-founder of Zara), Oprah Winfrey (celebrated US television hostess), Margaret Whitman (eBay founder) and JK Rowling (author of Harry Potter series). Zhang founded Nine Dragons in the mid-eighties and today owns 72% of its shares together with her Taiwan-born husband Liu Mingzhong and her brother Zhang Chengfei.

Yang Huiyan’s fortune heralds from churning out modestly priced homes predominantly in South China and a massive land bank of forty five million square meters. Since its listing in April, when Country Garden raised US$1.7 billion, the company's shares have risen 140 percent in value. Born into a poor farming family, low-key Yang Guoqiang began to acquire land in the mid nineties at the bottom of the market. Yang Huiyuan holds 59.5% of Country Garden. Her 52-year-old father Yang Guoqiang, founder and chairman, transferred his shares to her after she completed her studies in the US.

“These success stories are encouraging a large number of young Chinese to entrepreneurship,” says Rupert Hoogewerf, publisher of Hurun Report, China’s leading luxury business magazine with an audited circulation of 60,000. “China’s entrepreneurs are enjoying a surge in confidence.”


More billionaires than anywhere other than the US
Dramatically led by 106 US dollar billionaires, the ninth anniversary edition of the Hurun Rich List shows that Mainland China now has more US dollar billionaires than any country other than the US. Heralding a new era in the Chinese economy, this is up from fifteen billionaires last year and none in 2002. With a cut-off of US$105 million, the list features 300 new faces to bring the total number to 800, up from 500 last year. The average wealth has doubled over the past year to US$562 million. The Hurun Rich List has a combined net worth of US$457 billion.

China’s richest have reaped windfalls from a sharp hike in property prices and the burgeoning Chinese stock markets, which have continued to rise despite the summer’s jitters around the rest of the world.

“2007 has been China’s coming of age in terms of personal wealth creation,” says Rupert Hoogewerf. “However, there is still plenty of growth opportunity as China’s top entrepreneurs turn their sights to the vast undeveloped and largely unregulated economic hinterland.”


The stories of these people tell the story of modern China
The highest new entry at number six and the youngest self-made individual on the Hurun Rich List is 32-year old Peng Xiaofeng, founder of LDK Solar, which listed on the NYSE this June amassing Peng a US$5.3 billion paper fortune. LDK Solar manufactures solar wafers, the principal raw material used to produce solar cells.

Xu Rongmao at number three has seen his wealth grow to US$7.5 billion, up US$5.5 billion since last year. With 15% of Shanghai’s five-star hotel rooms, Xu has been aggressively expanding his portfolio across the country and even into Russia. Since first making the Hurun Rich List in 2001, Xu has consistently maintained a top five ranking.

Huang Guangyu, twice previously a number one, comes in fourth with US$6 billion, on the back of a hike in GoMe’s share price and having now cashed out close to US$1 billion in total, making him China’s cash-richest individual. His Suning rival Zhang Jindong has seen his wealth rise more than six-fold to US$5 billion on the back of a strong performance by his Shenzhen-listed vehicle. The electronic retailing giants both have brothers in property development on the list, with Huang Junqing coming in at US$2.7 billion and Zhang Guiping at US$3 billion, giving the Huang brothers a combined wealth of US$8.7 billion and the Zhang brothers US$8 billion. Huang Junqing is currently in the process of injecting further assets into his HK-listed vehicle which – if successful – could value him at US$15 billion.

Zhang Li, co-founder of R&F, another property developer originating in South China, has also seen his wealth triple as R&F has built up its land bank across the country.

Larry Rong, son of the late Chinese vice-president Rong Yiren and the only dynastic fortune in Mainland China, at the end of last year bought a 1.1% US$800 million stake in Anglo American, South Africa’s largest company, a landmark deal in China’s aggressive acquisition of African resources.

Investor Guo Guangchang rejoins the top ten for the first time in four years after raising US$1.5 billion in a Hong Kong listing in June. With investments in steel, property, retail, pharmaceuticals and mining, Fosun is well placed to tap the international capital markets for further investment opportunities.

Nine of the top ten richest individuals have listed companies. The largest unlisted company is Hengda, another property developer in South China. There are four new faces in the top ten. The average age of the top ten is 46 years.



Proudly presented by Royal Salute
"Royal Salute is proud to present the 2007 Hurun Rich List," says Terence Ong, Brand Director of Pernod Ricard China. "As the prestigious super-premium Scotch whisky, Royal Salute has been long recognized as the mark of respect for exceptional achievements in any field, we believe that only by presenting the best to the best can these Chinese entrepreneurs on the list feel our heartfelt respect."


Some Background
The rich in China are growing much faster than their Western counterparts. The average wealth of the Hurun 800 is now US$562 million, a 104% increase on 2006. It takes US$105 million (up 5% due to the appreciation of the RMB) to make the list – a far cry from our inaugural list of China’s richest people nine years ago, when we could only rank fifty individuals with a cut-off then of US$6 million. Property development continues to be the greatest creator of private wealth in China followed by manufacturing. It seems unthinkable that twenty years ago land had only negligible value. Most are based in Guangdong, which houses 139 of the 800, and another 124 live in Zhejiang.

The profile of the China’s richest is a 47-year old man from East China in property development or manufacturing, who started his business in 1993.


Surge in confidence
With the Olympics now only a year away, there is a huge surge of confidence exuding from China’s top entrepreneurs, whose wealth is growing much faster than GDP. Laws put in place to protect private property and a growing sense that the government is now relying on private enterprise to drive forward the economy has boosted their confidence. Encouraged by fast-growing employment and increased tax payments, local governments are strongly supporting their local success stories. Television programmes, such as local versions of The Apprentice or CCTV’s Business Leader of the Year, now glamorize entrepreneurship.

The economic landscape is comparable to the US in the sixties having moved on from the robber baron period of the late nineteenth century, when vast areas of the economy were wide open to be exploited by smart, ruthless and fast-moving entrepreneurs.


Methodology
Valuing the wealth of China’s richest is as much an art as it is a science. Sure we have missed some people, but we believe the Hurun Rich List is the most serious attempt to identify China’s top entrepreneurs and to measure their holdings. Our team of researchers has - for the ninth year running - traveled the length and breadth of the country cross-checking information with entrepreneurs, industry experts, journalists, bankers, and regulators, as well as previous years’ databases. The cut-off date for valuation of listed companies was August 31, 2007. For non-listed companies we valued by comparing them with their listed equivalents using prevailing industry P/E ratios. This list relates to Mainland Chinese only, defined as someone born and brought up in Mainland China, no matter what passport they might hold today.



Appendix – Interesting facts

1. Companies that created the most individuals on the list
a) Minsheng Bank – 9 individuals led by Liu Yonghao
b) Ping’An Insurance – 7 individuals of whom little is known
c) West Mining – 7 individuals
d) Sany Heavy Industries – 6 individuals
e) Suning – 6 individuals led by Zhang Jindong
f) Country Garden – 5 individuals, led by Yang Huiyan
g) Erdos – 5 individuals led by Yang Zhicheng
h) Midea – 5 individuals led by He Xiangjian
　

2. Average wealth of Hurun Rich List has doubled over the past year to US$562 million (2006: US$276 million, 2005: US$187 million).


3. Total wealth: US$457 billion.


4. Youngest on list. 67 individuals are under the age of 40 on the list, led by Yang Huiyan. The youngest self-made entrepreneur is Xue Lixi, an investor into a listed company.
　
Age Name Wealth US$m Company
26* Yang Huiyan 17,500 Country Garden
26* Li Zhaohui 1,100 Haixin Group
27* Ceng Sheng 240 Honglong Holding
30 Xue Lixi 270 Fengrong Investment
32 Peng Xiaofeng 5,300 LDK Solar
32 Wu Rongguang 105 Hongxingerke Group
33* Shi Yuewu 310 Zhengxing Group
33 Xian Yang 1,850 Hidili Industry
33 Chen Yamei 370 Hengshunchang
34 Chen Tianqiao 1,300 Shanda
34 Fang Wei 290 Liaoning Fangda Group
34 He Jilun 130 TimeShare Media
34 Jiang Nanchun 530 Media
34 Wang Weixian 630 Property
35 Chen Jianhua 330 Chemical fibers for textiles
35 Liu Yingxia 210 Property
35 Dong Defu 160 Techfaith Wireless
35 Li Shujun 310 Yingli Solar
35 Liu Yingxia 210 Xiangying Group
35 Liu Zhixiong 310 3Nod Group
35 Zhang Zhirong 400 Hongyun Group
35 Qian Yongqiang 120 Liandong Weiye Technology
35 Wang Zhongwang 240 Zhongwang Group
35 Zhang Zhidong 500 Tencent
35 Yao Juan 1,000 Fuji Food


* inherited wealth

5. Cut-off to make list this year was US$105 million. The RMB figure remained at RMB 800 million, however with the exchange rate fluctuation in the past year, the US$ cut-off changed by 5%.

　
Year Cut-off US$m No of people on list
1999 6 50
2000 42 50
2001 60 100
2002 84 100
2003 110 100
2004 150 100
2005 60 400
2006 100 500
2007 105 800



6. Average wealth of top fifty grew at 372%, much faster than the average wealth of the Hurun 800, which grew at 204%. Below is a chart with the average wealth figure of the top fifty since 1999, together with the cut-off to make the top fifty.
Year Av wealth US$m Cut-off US$m
1999 NA 6
2000 203 42
2001 278 110
2002 274 145
2003 326 180
2004 413 230
2005 611 320
2006 970 525
2007 3,609 1,600



7. Previous year number ones
　
Year Name Wealth US$m
1999 Rong Yiren 1,000
2000 Rong Yiren 1,900
2001 Liu Yongxing, Liu Yonghao & bros 1,000
2002 Larry Rong Zhijian 850
2003 William Ding Lei 900
2004 Huang Guangyu 1,300
2005 Huang Guangyu 1,700
2006 Zhang Yin & family 3,400
2007 Yang Huiyan 17,500



8. 18 new entrants in Top 100 Peng is the highest new entry to the Rich List, making it to the top ten, followed by Zhang Guiping. Below is a list of the highest new entries. There were 340 new entries this year.
Rank Wealth US$m Name Company Industry
6 5,300 Peng Xiaofeng LDK Solar Solar panel components
21 3,000 Zhang Guiping Suning Universal Real estate
33 2,200 Kong Jianmin & family KWG Property Real estate
36 2,000 Xiong Xuqiang Yinyi Group Real estate
40 1,900 Ding Shizhong & family Anta Sports apparel
41 1,850 Lin Li Liye Group Insurance
41 1,850 Xian Yang Sanlian Group Coke
44 1,800 Zhu Linyao Huabao International Fragrances & Flavouring
45 1,700 Gao Yanming North China Shipping Shipping
50 1,600 Chen Yihong China Dongxiang Sports apparel
65 1,300 Mo Feng Transfield ER Group Shipping
65 1,300 Ou Tongguo ITAT Textile retail
76 1,200 Ren Yuanlin Yangzijiang Shipbuilding Shipbuilding
81 1,050 Wu Yajun Longhu Real estate
93 1,000 Dong Shutong CNR Holdings Steel
93 1,000 Geng Jianming & Geng Jianfu RiseSun Holdings Real estate
93 1,000 Guo Ziwen China Aoyuan Property Group Real estate
93 1,000 Zhou Lianqi & family Septwolves Textiles
107 950 Ding Shuibo Xtep Sports apparel
109 880 Liu Xiaomeng Suning Electronic appliance retail, Real estate
115 800 Chen Jianming Sansheng-Hongye Group Real estate
115 800 Dai Weili Marvell IT
115 800 Fan Wei Fosun Diversified
115 800 Wang Dong Yangzijiang Shipbuilding Shipbuilding
115 800 Wang Yucheng, Wang Wencheng, Wang Guocheng (brothers) Xingye Group Diversified
115 800 Zhu Yuguo Qunxing Paper Paper
130 750 Liu Zhiqiang & Zai Meiqing Heung Kong Group Real estate, furniture retail
132 730 Zhou Guohui Eternal Asia Supply Chain Management
138 700 Hu Mingcong & family BYE Cabling
146 650 Huang Maoru Maoye Group Real estate, Retail
146 650 Lan Shili East Star Group Real estate, airline, tourism
146 650 Li Xiyan Mindray Medical Medical devices
146 650 Wang Jianlin Wanda Group Real estate



9. Fastest risers Yang Huiyan is the fastest riser on Rich List with an increase of US$17.2 billion, followed by Zhang Yin, whose wealth increased by US$6.6 billion. Last year, there were ten individuals from Country Garden on the list, six of whom have been replaced by Yang Huiyuan.
Wealth increase US$ billion Name Company Industry
17.2 Yang Huiyan Country Garden Real estate
6.7 Zhang Yin & family Nine Dragons Paper Paper
5.3 Peng Xiaofeng LDK Solar Solar panel components
5.2 Xu Rongmao Shimao Real estate
4.2 Zhang Jindong Suning Electronic appliance retail, Real estate
4.2 Zhang Li R&F Properties Real estate
4.0 Xu Jiayin Hengda Real estate
3.9 Lu Zhiqiang Fanhai Real estate, finance
3.6 Guo Guangchang Fosun Diversified
3.4 Zhang Xin & Pan Shiyi SOHO China Real estate
3.4 Rong Zhijian Citic Pacific Diversified
3.3 Huang Guangyu Pengrun Investments Electronic appliance retail, Real estate
3.1 Zhang Guiping Suning Universal Real estate
3.0 Shi Yuzhu Giant Investments Online games, Pharmaceuticals, finance
3.0 Liu Yonghao & family New Hope Group Finance, Pig feed, Real estate, Dairy



10. Industries listed by entrepreneurs as one of their key industries: Property is still king with 24% of entrepreneurs listing it as one of their key industries, followed by manufacturing. The percentage of property tycoons has been diminishing from 26% last year and 45% in 2004. The fastest growing sectors are apparels, mining, services, chemicals,
Industry # of indiv %
Property 220 24%
Manufacturing 205 22%
IT 73 8%
Healthcare 55 6%
Finance 47 5%
Services 44 5%
Iron&steel 41 4%
Retail 38 4%
Food&drinks 36 4%
Energy 36 4%
Apparels 33 4%
Mining 31 3%
Chemicals 22 2%
Civil infrastructure 14 2%
Agriculture 12 1%
Oil and gas 9 1%
Media 6 1%

　


Environmental 5 1%
11. Politics: On the Hurun Rich List, there are 38 delegates to the National People’s Congress and 41 to the China People’s Political Consultative Congress (CPPCC). One third estimated to be CCP members.
　

12. Women: 65 individuals on Hurun 800 led by Yang Huiyan and Zhang Yin at numbers 1 and 2 respectively. This represents 8% of the total.
　

13. Self-made women. Led by Zhang Yin, the other top women include Beijing property developers Zhang Xin (US$3.6 billion) and Chen Lihua (US$2.7 billion), flavors and fragrances manufacturer Zhu Linyao (US$1.8 billion) and steel investor Diana Chen Ningning (US$1.3 billion). The role of women in China has undergone dramatic changes over the last century. Since winning equal status in the eyes of the law after 1949, women have begun to play a more active role in Chinese society, but it was not until the beginning of the economic reforms of 1978 that women really began to make their mark in business.
　

14. Average age: 47.3 years, down slightly from 47.7 years in 2006. Significant impact on education from ten year Cultural Revolution (1966-76), when they were on average 8 to 18 years old.
　

15. The oldest member of the list is Hou Lizun, who is 84 years old and worth US$130 million.
　

16. Cashing out: Huang Guangyu has pocketed US$1.2 billion from injecting privately-owned outlets into his HK-listed vehicle. Second is Rong Zhijian, who has taken away dividends from Citic Pacific of US$700m over the past decade, which he has been investing aggressively. Others that have cashed out big-time include Zhou Qingzhi, who sold his property holdings to Vanke for US$400 million, Liang Liangsheng who just announced the sale of 85% of his cosmetics group for US$400m, Wang Shusheng who sold his remaining 50% share in Datian to Fedex for just under US$400 million and Du Sha, who sold his Home World Group grocery retailer for around US$400 million.
　

17. Head office locations: Guangdong (139 entrepreneurs), Zhejiang (124), Beijing (87), Jiangsu (81), Shanghai (76), Fujian (47), Shandong 35, Sichuan (24), Liaoning (21).
　

18. Average time to make the rich list is fourteen years from starting-up the company, meaning they set up their business in 1993.
　

19. Birthplaces: Zhejiang (115 entrepreneurs), Guangdong (72), Jiangsu (70), Fujian (45), Shandong (27), Shanghai (27), Sichuan (22), Beijing (19), Hebei (19), Liaoning (18), Shanxi (18)
　

20. 28% relocated since birth (birthplace and company head office are different).
　

21. Preferred international holiday destinations: 1. Australia, 2. France, 3. US Mainland, 4. Hawaii, 5. Germany, 6. Japan, 7. Italy, 8. UK, 9. Canada, 10. Singapore, 11. S Korea, 12. Thailand, 13. Maldives, 14. New Zealand (source: Hurun 2007 Best of the Best Awards)
　

22. Preferred domestic holiday destinations: 1. Sanya, 2. Yunnan, 3. Hong Kong, 4. Hangzhou, 5. Beijing, 6. Qingdao (source: Hurun 2007 Best of the Best Awards)
　

23. Preferred luxury brands: 1. BMW, 2. Louis Vuitton, 3. Mercedes Benz, 4. Rolex, 5. Giorgio Armani, 6. Ferrari, 7. Rolls-Royce, 8. Bentley, 9. Cartier, 10. Vacheron Constantin (source: Hurun 2007 Best of the Best Awards)
　

24. Social responsibility
With the seventeenth party congress due to kick off next week, entrepreneurs are keenly aware of the growing rich poor divide and are turning their attention to being seen as socially responsible. They are beginning to give generously, with 85-year old Yu Pengnian, for example, having donated US$260 million, the bulk of his wealth, to a fund delivering cataract operations.

2007 Hurun Philanthropy List Top Ten, released April 2007
　
Rank Name Donations US$m* Causes Company
1 Yu Pengnian 260 Cataract operations Panglin
2 Zhu Mengyi 140 Education, health Hopson Development
3 Niu Gensheng 85 Social welfare Mengniu
4 Huang Rulun 83 Education, poverty, health Jinyuan
5 Yang Lan & Bruno Wu 72 Education, culture SunMedia Investments
6 Chen Dexun 46 Sports Mod-Log Industries
7 Li Shufu 36 Education, social welfare Geely
8 Duan Yongping 33 Education, disaster relief Bubugao
9 Huang Nubo 24 Sports, social welfare Zhongkun
10 Yang Xiu 17 Education, social welfare Tiandi


* Cash and cash equivalents donated between 2003 and 2007

25. Collecting art Yang Xiu has spent over US$100 million on his art collection. Chen Lihua has a sandalwood museum.
　

26. In Jail Two people on the list are in jail: Wu-Mart founder Zhang Wenzhong and Chuangwei founder Huang Hongsheng.
　

27. People that probably should be on the list, but about whom there is not enough publicly-available information, include
▪ Zhang Ruimin, founder of Haier
▪ Wu Guodi, founder of Alison Petrochemicals
▪ Zhuo Ma, wife of Yuan Baojing, the entrepreneur executed in 2006 for murder
▪ Yang Guoping, founder of Shanghai-based Dazhong
▪ Yu Guoqiang, who came to prominence after buying the Hilton Shanghai. However, Yu has been under house arrest for the past year following the Chen Liangyu affair. We are unclear as to the conclusion of this case, so have conservatively kept Yu off the list.
▪ Deng Wendi, the China-born wife of Rupert Murdoch
▪ Peter Ma Mingzhi, founder of Ping'An, a financial services co with more a market cap of US$126 billion. A one percent holding would already make Ma a billionaire.
　

28. Impact of capital markets Hong Kong’s capital markets dominate the fortunes of China’s richest with seven of the top ten having their main business listed there.

29. Largest companies by market cap
　
Rank Company Market Cap US$ billion
1 Ping'An 126
2 Minsheng Bank 31
3 Country Garden 28
4 R&F Properties 15
5 Citic Pacific 14
6 Suning 13
7 Nine Dragon 13
8 Tencent 11
9 Fosun 11
10* Huawei 11

* Company not listed. Market Cap estimated by comparing with their listed equivalents using prevailing industry P/E ratios.

30. Power List, a ranking of the ten most powerful people from the Hurun Rich List. Released on Oct 8, the fifth Hurun Power List is a ranking of the ten most powerful people from the Hurun Rich List. Top for the fifth year running is Rong Zhijian. The Power List reflects the growing impact the private sector is having on China’s economic development, measured by their political, economic (taxes paid, employees, sales), social and international impact. New to this year’s list are Zhang Yin, Zhang Jindong and Yang Guoqiang switching places with Shen Wenrong, Huang Guangyu and Zong Qinghou.


Hurun Rich List series
The 2007 Hurun Rich List series includes
1. Industry lists: Pharmaceuticals, Property, Energy, IT, Financial Services, Retail, Steel. These shall be released over the course of the next fortnight.
2. Friday, Oct 13 – Richest Women in China


Royal Salute Backgrounder
As the leading super-premium Scotch whisky in China, Royal Salute 21 year old was specially created in 1953 to celebrate the coronation of Queen Elizabeth II of Britain. It derives its name from an ancient tradition - the Royal Navy fires a 21 gun salute at the ceremony as a show of the highest respect to the head-of-state. The most precious malt and grain whiskies selected from Scotland’s highlands are meticulously blended to produce this sumptuous whisky, which is then filled in selected casks to mature for at least 21 years. The result is Royal Salute’s rich flavor and special smoothness, earning praise and admiration worldwide.

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