Hurun institute 2014

6F, Zhongrong Jasper Tower, 8 Yincheng Road, Shanghai 200120

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IT’S OFFICIAL: JACK MA OF ALIBABA RICHEST MAN IN CHINA WITH US$25BN

FORTUNE

354 DOLLAR BILLIONAIRES IN CHINA, NEW RECORD.

2 SELF-MADE BILLIONAIRES BORN IN EIGHTIES

HURUN REPORT - LEADING AUTHORITY ON CHINA’S WEALTHY - RELEASES CHINA RICH LIST 2014

Jack Ma of Alibaba, 50, becomes the 11th Number One in 16 years of the Hurun Rich

List, with a fortune of US$25bn, surpassing Wang Jianlin of Wanda in second place with US$24.2bn.

Despite the scale of Alibaba’s IPO, only Jack Ma and one other shareholder make the list, Xie Shihuang.

There are 354 dollar billionaires, up 39 on last year. 10 years ago there were only 3. ‘Renewable Energy King’ Li Hejun, 47, of Hanergy makes the Top 3 for the first time,

with US$20.8bn. 3 of the Top 6 speak fluent English: Jack Ma, Li Hejun and Robin Li, demonstrating the

globalization of the Chinese private sector. 819 saw their wealth grow (last year 672) of which 343 (last year 115) were new faces. Total wealth comes to US$1.4 trillion, more than the GDP of countries like Spain or South

Korea. 5 new faces in the Top 10: Jack Ma, Li Hejun, Yan Jiehe, Liu Qiangdong and Lei Jun. 26 are under forty and self-made, two of whom are dollar billionaires: Chen Ou, 31, of

Jumei with US$1.5bn, and 34-year old Zhang Bangxin, 34, of TAL Education worth US$1.05bn. Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher said, “The entrepreneurial spirit that has caught China seems not to be abetting, with 8 self-made individuals born in the eighties making the list. Any country would be proud of that.”

IT has seen the biggest boom. 5 of the Top 10 are in IT. It’s been a good year for entertainment, investments, cars, renewable energy, pharmaceuticals, manufacturing. It has been a bad year for steel and shipping. Manufacturing and real estate are the primary source of wealth for almost half the list.

Social Media. 7 of the Top 10 on the Hurun Rich List are amongst the most popular social media bloggers, showing the huge impact these individuals are having in China. Real estate tycoon Pan Shiyi is the newly-crowned ‘social media king’ with 27m followers, followed by actor and investor Jet Li.

Going global. Wang Jianlin of Wanda and Guo Guangchang of Fosun have been leading the global charge of the Hurun Rich List. Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher said, “The Hurun Rich List has seen more action on the international front than in the previous 15 years added together.”

8 of the Fortune Global 500 are controlled by people from the Hurun Rich List, led by Yan Jiehe of China Pacific Construction, which came in at Number 166.

Residences. Beijing is the city of choice to live in with 180 individuals living there, 40 more than last year. Shanghai, surprisingly, comes in third behind Shenzhen again.

Anti-corruption campaign. 18 of last year’s list are in varying degrees of trouble with the authorities, of which 11 still made the list this year.

12% are self-made women, led by Chen Lihua, 73, the most successful businesswoman in the world.


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Political appointments. 166 of the Hurun Rich List, up 13 from last year, are either delegates to the 12th NPC or CPPCC. 7 are members of the standing committee of the 12th National People’s Congress, 8 are vice chairmen of the All-China Federation of Industry and Trade. 40% of the Top 50, almost triple the average on the list, have senior political appointments.

Chinese star signs. It has been a good year for dragons and oxen, and a bad year for rats and pigs. Rabbits lead the way for the umpteenth year. The richest man, Jack Ma, is a dragon, traditionally viewed as one of the most powerful of the Chinese star signs. Wang Jianlin is a horse.

Hainan Clearwater Bay of Agile, a luxury holiday home development targeted at Chinese from across the country, is title sponsor of the Hurun Rich List for the 6th successive year.

(23 September 2014, Beijing) The Hurun Research Institute today released the Hurun Rich List 2014, the 16th annual ranking of the richest individuals in China. Wealth calculations are a snapshot of 15 August 2014. The Hurun Rich List 2014 is sponsored by Hainan Clearwater Bay of Agile for the sixth year running. It has been an amazing year for China’s best tycoons despite the jitters about the Chinese economy. Stock markets in Shanghai and HK shot up 71% and 61% respectively, with the ChiNext up a remarkable 104%; there were a record 354 dollar billionaires, up 39 on last year, up 103 on two years ago and up 351 on ten years ago, when there were only 3; the cut-off to make the Top 100 is now US$2.3bn, 15 times that of ten years ago; the list has expanded by 271 names, despite keeping with the same cut-off as last year of 2bn CNY (US$330 million); 819 individuals saw their wealth grow, of which 343 were new faces. The total wealth of this year’s Hurun Rich List is US$1.4 trillion, equivalent to 15% of the GDP of China, and larger than the GDP of countries like Spain or South Korea. Jack Ma Yun is officially crowned the Richest Man in China. A 38% rise in Alibaba’s stock on the first day of trading rocketed Jack Ma into the Number One position with a fortune of US$25bn, up five times on last year. Ma is the 11th Number One in the 16 years of the Hurun Rich List. Ma’s fortune is mainly made up of his 6% holding in Alibaba and his 46% share in Alipay. Having achieved the world’s largest IPO, raising US$25bn, expect to see more of Alibaba on the international stage. Only one other Alibaba co-founder makes the list, Simon Xie Shihuang with US$1.6bn, the others hidden in the management team share structure. 60-year-old Wang Jianlin’s wealth grew 7% to US$24.2 billion, but it was not enough to keep his Number One title. Internationally, it has been a busy year with real estate acquisitions in Chicago, LA, Australia’s Gold Coast and Madrid. Wang’s domestic real estate business grew by a staggering 30% to US$31bn last year, and in September this year, Wang announced Wanda was going for a HK listing, which could value the business as much as US$50bn. Also in the summer, Wang joined forces with two other Top Ten Tycoons, Pony Ma of Tencent and Robin Li of Baidu, to announce an online retail joint venture to take on Alibaba. Cinemas, art collections, you name it, Wang is expanding his footprint at a prodigious rate. Son Wang Sicong has one of the most viewed microblogs in China. 47-year old ‘Renewable Energy King’ Li Hejun of Hanergy shot up to third place with a fortune of US$20.8bn. Li’s big turning point came in 2011 when a dam he built in Yunnan came online, today generating almost US$1bn in cash flow. Li has been ploughing this into thin-film solar and making acquisitions in the US and Europe to shore up his first-mover advantage.


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Today Li’s solar business generates the equivalent of the electricity needed to power a city with a population of 10 million for a year. Li last year listed part of his solar business, which makes up US$5bn of Li’s wealth. Li owns 97.6% of Hanergy. 69-year old Zong Qinghou, a former Number One, dropped down one place to third, despite his wealth growing 9%, on the back of a strong sales performance by Wahaha. Zong’s daughter Kelly Zong Fuli is playing a more important role in the business. Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher said, “Jack Ma is the 11

th

Number One we have had in China in the last 16 years, showing the dynamism of the Chinese economy, and a stark reminder of the growth potential that is being realized in the emerging markets. Ten years there were only 3 dollar billionaires, now there are 354.” Hurun Rich List 2014 - The Top 10

Wealth US$bn Main company Industry Age

1 * Jack Ma Yun & family 25 (+500%) Alibaba IT 50

2 ↓ Wang Jianlin & family 24.2 (+7%) Wanda

Real estate, entertainment

60

3 * Li Hejun 20.8 (+862%) Hanergy

Renewable energy, HEP

47

3 ↓ Zong Qinghou & family 20.8 (+9%) Wahaha Drinks 69

5 ↓ Pony Ma Huateng 18.1 (+75%) Tencent

IT, entertainment

43

6 - Robin Li Yanhong & Melissa Ma Dongmin 17.5 (+110%) Baidu IT

46, 44

7 * Yan Jiehe & Yan Hao 14.2 (+372%)

China Pacific Construction Roads

54, 28

8 ↓ Yan Bin 10.0 (+20%) Reignwood

Red Bull, real estate

60

9 * Richard Liu Qiangdong 8.8 (+715%) JD.com IT 40

10 * Lei Jun 7.5 (+181%)

Xiaomi Technology

IT, investments

45

Source: Hurun Rich List 2014 sponsored by Hainan Clearwater Bay of Agile ↑ Rank increase yoy ↓ Rank decrease yoy - No Rank change yoy * New to Top 10

The Top 10 For the second year running, there are five new faces in the Top 10, showing the dynamism of the Chinese economy. This year’s new faces in the Top 10 are Jack Ma, Li Hejun, Yan Jiehe & Yan Hao, Richard Liu Qiangdong and Lei Jun. Five made their money from IT, two more than last year. There were only two real estate tycoons, down from six last year. The average age of the Top Ten is 51 years, two years younger than the list as a whole.


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Interestingly, 4 of the Top 10 speak fluent English, a record number for the Top 10 of the Hurun Rich List, suggesting they are becoming more global. They are Jack Ma, Li Hejun, Robin Li and Richard Liu. 43-year old Pony Ma, continues his amazing growth, up another 75% to US$18.1bn and fifth place. Tencent, in which Ma has 10.25%, has become the most valuable brand in China, ahead of China Telecom, according to the latest Hurun Most Valuable Brands List. In the past year, Tencent bought 15% of JD.com, whose founder Liu Qiangdong also makes the Top 10. Husband and wife Robin Li and Melissa Ma, saw their wealth rebound with a vengeance, after 2 years of slight drops, this year doubling to US$17.5bn and 6th place. 54-year old Yan Jiehe shoots back into the Top 10 after an eight year break. This year Yan broke into the Fortune Global 500, straight in at Number 166 with revenues of US$61bn, making China Pacific Construction the largest private company in China today. 28-year old son Yan Hao is CEO, making him the youngest CEO of a Global 500 company. 60-year old Yan Bin saw sales of Red Bull in China last year grow 30% to US$2.5bn, driving up his wealth to US$10bn. In the past year, Yan spent just over US$200 million buying Wentworth Golf, one of the UK’s best-known golf courses, to add to a previous US$600m investment in a luxury development in London. Yan also paid out US$170 million for a stake in a coconut water brand, which he plans to take to China. 40-year old Richard Liu Qiangdong took JD.com public in August this year, catapulting him into the Top 10 for the first time with a personal fortune of US$8.8bn, ahead of archrival Zhang Jindong of Suning, who dropped to 11

th place. JD.com has not yet made a profit. Liu has

20.7% of JD.com. 45-year old serial entrepreneur Lei Jun saw his wealth shoot up to US$7.5bn on the back of Xiaomi’s continued growth. In 2014, Xiaomi expects to sell 60 million phones. What happened to Last Year’s Top 10? Real estate has not managed to keep up with IT this year, such that 3 real estate tycoons dropped out of last year’s Top 10, including Yang Huiyan, Xu Rongmao and Xu Jiayin. Yang’s County Garden’s stock price dropped off the cliff earlier this year after a profits warning and badly timed investments into Malaysia, just when MH370 disappeared. Xu Jiayin has not been far from the headlines again this year, with the announcement that he was bringing in China’s Richest Man Jack Ma as a 50% equity partner in his soccer team, Guangzhou Evergrande, and that he was investing into South Korea’s largest plastic surgery business, as a way of reducing Evergrande’s reliance on real estate. Two of last year’s fastest climbers dropped back down again. Great Wall Autos founder Wei Jianjun, 50, saw his wealth shrink by 28% to US$6.2bn, dropping him out of the Top 10 this year to 22nd place. Jiang Bin, 48, of GoerTek, a supplier to Apple, dropped down 29 places after a 40% shrink in his wealth due to a profits warning.


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Richest Under 40. Of the 62 individuals under the age of 40, 26 are self-made and 36 are inherited. There are two self-made dollar billionaires under 40: Chen Ou, 31, of Jumei is the youngest self-made billionaire with a fortune of US$2bn, from his 35.6% holding in recently listed Jumei, an online retailer for cosmetics. Another is Zhang Bangxin, 34, of TAL Education worth US$1,050. In total there were 8 self-made individuals on the Hurun Rich List born in the Eighties. Hurun Rich List 2014 – Richest Self-made & Born in Eighties

Age Name Wealth

US$m Rank

Gender Company

28 Dai Yusen 330 1156 M Jumei

31 Chen Ou 2,000 130 M Jumei

33 Lin Qi 920 373 M Youzu

33 Yu Xin 900 389 F Rapoo

34, 33 Wang Qicheng & Wu Yan 830 406 M, F Hakim

34 Zhang Bangxin 1,050 307 M TAL Education

34 Yao Ming 330 1156 M Yao Ming

Zhang Bangxin started out as with after-school tutoring services under the brand Xueersi. TAL Education was listed in 2010 and today provides services for 500,000 students. Lin Qi, 31, founded mobile games operator Youzu in 2009 and made it briefly to billionaire status earlier this year, although since then his 37% shareholding has dropped back to be worth US$920 million. Together with her 43-year old husband Zeng Hao, Yu Xin has built Rapoo into China’s leading computer mouse producer. Since retiring, former NBA Superstar Yao Ming has been active with business ventures including his own basketball team and a high-end wine brand Hakim Information, built-up by husband and wife team Wang Qicheng & Wu Yan, is an investment research business. Going International. 2014 has marked a watershed in acquisitions by the Hurun Rich List, with deals in the past year outdoing deals in all the previous 14 years combined. The two most proliferate have been Wang Jianlin of Wanda, with acquisitions of US$3bn, and ambitious Guo Guangchang of Fosun. Guo has been active on the international circuit, acquiring a Portuguese insurance company for US$1.3bn, a Spanish ham brand and – this


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month - announcing a US$840 million offer to buy out the rest of French holiday resort Club Med. The Big Three internet players Alibaba, Tencent and Baidu, have been active with international acquisitions. Others of interest include Xu Weiping of ABP, who announced a US$1.6bn real estate investment into London; Xue Guanglin of Brightoil paid US$1bn for US oil company Anadarko; Yuan Yafei of Sanpower, who acquired the UK department store House of Fraser for US$750 million; Xu Jiayin of Evergrande acquired a significant stake in a South Korean plastic surgery business; Chen Lihua of Fuwah International announced hotel developments in Perth, Australia, and New Zealand; Dai Zhikang of Zendai surprised many when he announced a US$100 million investment into South Africa; Lin Yi of Shenglong acquired a plot of land in Sydney for US$150 million; Yan Bin of Reignwood bought Wentworth Golf, one of the UK’s best-known golf courses, for US$200 million and 25% in a US coconut drink brand. Points of interest China’s Zara? 53-year old Zhou Jianpin of Hailan saw his wealth triple of US$4.7bn and rocketing up to 32

nd place.

Highest new entry. There were 342 new faces, up significantly on last year’s 115, mainly due to the stock market boom and the government allowing new listings again after a one-year hiatus. 5 of them made it straight into the Top 100, including solar tycoon Zheng Jianming of Shunfeng PV, who made the headlines recently when he took over what was left of the companies of two of Hurun Report’s former Top 5 richest men, Shi Zhengrong and Peng Xiaofeng. Zheng shoots into 61st place with a fortune of US$2.9bn. Zhang Lei of Hillhouse Capital came in at US$2.5bn, starting off with an early investment in Tencent. Bankruptcy. Following on from Suntek last year, this year Li Zhaohui’s steel company that he inherited after his father’s death a decade ago, declared bankruptcy. Death. Zhang Xiangqing of Rockcheck Steel, died of cancer this year aged 45, scaring many other entrepreneurs into taking more care of their health. Most people from a company. Sany is again the business with the most individuals on the list, with 6 individuals. 3 companies has 5 people: Haitian, Erdos and Country Gardens; 5 companies had 4 people: Suning, Anta, Neway Valve, Tianshan and Fosun. Global 500 companies. 8 of the 100 Chinese companies on the Fortune Global 500 are controlled by individuals from the Hurun Rich List: China Pacific Construction (Yan JIehe), Weiqiao Pioneering (Zhang Shiping), Huawei (Ren Zhengfei), Amer (Wang Wenying), Sha Steel (Shen Wenrong), Huaxin Energy (Su Weizhong, Li Yong and Zheng Xiongbin), Lenovo (Yang Yuanqing) and Geely (Li Shufu), A further two more have important shareholders from the Hurun Rich List: PingAn (Lin Li) and Minsheng Bank (Liu Yonghao and Shi Yuzhu). Most valuable companies. Alibaba is the most valuable company run by someone from the Hurun Rich List, with a market cap of US$232bn, larger than Facebook and Coca Cola. Tencent, Baidu, Huawei and JD.com round out the Top 5, with market caps of US$160bn, US$77bn, US$52bn and US$40bn respectively.


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Former politician. Ye Chenghai, a former vice mayor of Shenzhen, is the richest ex-politician. Ye’s US$2.6bn wealth derives from listed Salubris Pharmaceuticals Family surnames. Wang has shot to the top for the first time, up from third place last year, with 7% of the Hurun Rich List, pipping Zhang, last year’s number one, into second place. China’s most common surname, Li, continued to drop, from second to third place, with 6.3%. Title sponsor of Hurun Rich List. Hainan Clearwater Bay, a luxury holiday home development by HK-listed Agile Property, controlled 63.6% by Chen Zhuolin & family, is title sponsor of the Hurun Rich List for the sixth year running. Chen is in 51

st place with a fortune of

US$3.2bn. Social Media Impact 7 of the Top 10 on the Hurun Rich List are amongst the most popular social media bloggers, showing the huge impact these individuals are having in China. They include Jack Ma (owns a stake in Sina Weibo), Pony Ma (largest shareholder of Tencent Weibo), Zong Qinghou, Wang Sicong (son of Wang Jianlin), Lei Jun, Liu Qiangdong and Yan Jiehe. Real estate tycoon Pan Shiyi is the newly-crowned ‘social media king’ with 17 followers on Sina and 9m on Tencent. Actor and investor Jet Li leads on Tencent Weibo with 13.4m fans. Chen Ou of Jumei, the 31-year old self-made billionaire, has 3m followers on Sina Weibo. Last year’s number one, Yang Lan, still has a huge following but fell off the rich list so is no longer ranked.

Sina Weibo Followers (m)

Tencent Weibo Followers (m)

1↑ Pan Shiyi 17.0 (+1) 1↑ Jet Li 13.4

2↑ Jack Ma 15.8 (+6.1) 2 - Pan Shiyi 9.3 (same)

3↑ Yu Minhong 13.6 (+2.4) 3 - Yu Minhong 8.1(+0.4)

4↑ Xu Xiaoping 11.7 (+1.5) 4↑ Lei Jun 6.6 (+0.4)

5↑ Lei Jun 11.1 (+5.8) 5↑ Jiang Xipei 6.5 (+2.0)

6↑ Zhou Hongyi 9.2 (+2.2) 6↓ Chen Guangbiao

6.4 (same)

7↑ Zhang Xin 8.5 (+2.0) 7↓ Shi Yuzhu 5.8 (+0.4)

8↓ Shi Yuzhu 7.5 (+0.2) 8 - Pony Ma 5.0 (+0.8)

9↑ Jiang Nanchun

6.9 (+1.8) 9 - Li Guoqing 4.3 (+0.3)

10 *

Jiang Xipei 6.6 10 - Liu Qiangdong

4.2 (+0.2)

11↑ Wang Changtian

6.5 (+1.8) 11↑ Ma Yun 3.9 (+0.4)

12↑ Li Yifei 6.4 (+1.8) 12↑ Yan Jiehe 2.6 (+0.3)

13 *

Wang Sicong 5.9 13↑ Shen Nanpeng

2.2 (same)


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14↑ Chen Guangbiao

4.6 (+0.2) 14 - Ding Shuibo 2.1 (same)

15↑ Wang Chaoyong

4.5 (+0.7) 15↑ Jiang Nanchun

1.6 (+0.2)

16 *

Jia Yueting 4.4 16 - Zong Qinghou 1.5 (same)

17↓ Ji Qi 4.4 (same) 17↑ Zhou Hongyi 1.3 (same)

18↑ Li Guoqing 4.2 (+0.9) 18 * Huang Ming 1.2

19↑ Yan Jiehe 3.7 (+0.7) 19↑ Li Yifei 1.1 (same)

20 *

Chen Ou 3.1 20 - Xiang Wenbo 1.0 (same)

Source: Sina and Tencent Weibo websites September 2014 ↑ Rank increase yoy ↓ Rank decrease yoy - No Rank change yoy * New to Top 10

Victims of the Anti-Corruption Drive This year has been a busy year for arrests and ‘helping the government with their inquiries’ Liu Han of Hanlong was sentenced to death, following a sensational trial involving murder and a mafia-style criminal organization in Chongqing. 2 of this year’s list and 2 of last year’s list are awaiting sentencing. Xu Ming of Shide, Zhu Xingliang of Gold Mantis Construction, Zhang Keqiang of Poly Property Group and Liang Yaohui of Dongguan Taizi Hotel.

5 of this year’s list are under investigation: Huang Hongming of Changhong, Deng Hong of Chengdu Exhibition and Travel Group, Wang Junlin of Sichuan Langjiu, Fang Wei of Fangda, Hua Bangsong of Wisen Engineering, 3 people from last year’s list are under investigation and do not make this year’s list: Cheng Qingbo, in the railway business, Jia Tingliang and Yuan Yuzhu.

Disappeared, possibly overseas. Li Yan, also known as Suolan Duoji, who shot to fame a few years back when he tried to buy the Hummer car brand from General Motors, is under investigation. Others include Liu Shaoxi of Yihua and Liu Yingxia, 42, who was also stripped of her NPC appointment. In prison. Huang Guangyu of GoMe and Zhang Wenzhong of Wumart. Residences – Where they live The ‘Big Three’, Beijing, Shenzhen and Shanghai, are widening the gap from the rest. Beijing continues to pull away from the competition with 180 individuals living there, 40 more than last year. Shanghai, surprisingly, comes in third behind Shenzhen again, pulling in only 18 new faces compared with 32 for Shenzhen.


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By province, Guangdong continues to lead the way with 230 individuals, up a staggering 60 individuals since last year, followed by Beijing, which has consolidated second place over Zhejiang. By birthplace, Zhejiang continues to lead head and shoulders above those born in Guangdong. This is very much reflected in the influence of the Zhejiang Business Associations across the country. Jiangsu comes in a distant third by comparison. Table: Preferred Cities for the Hurun Rich List

No. of indiv (change in year)

1 Beijing 180 (+40)

2 Shenzhen 110 (+34)

3 Shanghai 93 (+22)

4 Hangzhou 63 (+12)

5 Guangzhou 46 (+2)

6 Suzhou 31 (+7)

7 Hong Kong 30 (+2)

8 Chengdu 26 (+5)

9 Wuxi 25 (+3)

9 Foshan 25 (+8) Source: The Hurun Research Institute 2014

Industry analysis It’s been an amazing year for: online retail and other IT. It’s been a good year for: entertainment, investments, cars, renewable energy, pharmaceuticals, and manufacturing. It’s not been a bad year for: apparel, which seems to have turned the corner, and real estate, which could have done a lot worse, bearing in mind the state of the market. It’s been one of those years for natural resources, which has not been up nor down. It’s been a bad year for steel and shipping. Hurun Rich List 2014 – Most Popular Industries

Industry 2014 % 2013% Richest Individual Company

1 Manufacturing 23.1% 20.3% He Xiangjian & He Jianfeng

Midea

2 Real estate 19.8% 23.5% Wang Jianlin & family Wanda

3 Finance + Investments

10.1% 9.6% Liu Yonghao & family New Hope


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4 IT 7.8% 7.0% Ma Yun & family Alibaba

5 Pharmaceuticals 6.9% 6.7% Li Jinyuan Tiens

5 Natural Resources

6.9% 6.6% Yu Yong Cathay Fortune Corp

7 Retail 4.1% 3.1% Ma Yun & family Alibaba

8 Apparel 3.5% 3.9% Zhou Jianping & family Hailan

9 Food & Beverages

3.4% 2.7% Zong Qinghou & family Wahaha

10 Construction 2.6% 3.0% Yan Jiehe & Yan Hao China Pacific Construction

11 Services 2.4% 2.3% Yu Minhong New Oriental Education

12 Iron & Steel 2.3% 3.7% Du Shuanghua Rizhao Iron and Steel

13 New Energy 2.2% 2.5% Li Hejun Hanergy

14 Agriculture 2.0% 1.8% Liu Yonghao & family New Hope

15 Transportation 1.6% 1.8% Wang Wenliang China Rilin

16 Media + Entertainment

1.3% 1.5% Ma Huateng Tencent

Source: The Hurun Research Institute 2014 * New number one

Political Appointments 166 of the Hurun Rich List, up 13 from last year, are either delegates to the 12th NPC or CPPCC. The 12th NPC and CPPCC run for a five year term from 2013 to 2018. There is a clear trend for Hurun rich listers to seek out senior political appointments. 13.1% of the Hurun Rich List has some senior political appointment, down from 15.7%. This drop is mainly due to the list being expanded by 271 people to 1271, instead of 1000 last year. There are 90 (up 6 from last year) delegates to the NPC and 76 (up 6 from last year) delegates to the CPPCC. For the first time, 2 rich listers has been dismissed from the NPC (Liang Yaohui, after being linked to the sex trade in his hotel in Dongguan, Guangdong, and Fang Wei, 41, worth US$2.6bn) and one from the CPPCC (42-year old Liu Yingxia) There are seven members of the standing committee of the CPPCC on the Hurun Rich List 2014, namely Lu Zhiqiang (for a second term), Xu Jiayin, Nan Cunhui, Wang Wenbiao, Liu Changle, Sun Yinhuan and Mao Yonghong. 8 individuals on the Hurun Rich List were delegates to the 18th Party Congress in October two years ago, including Liang Wengen, Zhou Haijiang, son of Zhou Yaoting, Wei Jianjun, Li Denghai, Chen Xueli (for the second time), Feng Yali (sister of Feng Hailang), Zhang Yubo and Wang Dong. 9 individuals are vice chairmen of the All-China Federation of Industry and Trade, including Li Yanhong, Li Hejun, Xu Jiankang, Sun Yinhuan, Su Zhigang, Mao Yonghong, Zhou Haijiang, Xu Guanju and Pan Gang.


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Business associations are also an important barometer of the influence of a tycoon. Nan Cunhui of Chint is chairman of the Zhejiang Business Association in Shanghai, taking over from Zhou Chengjian, who himself took over from Guo Guangchang; Chen Hongtian is chairman of the Shenzhen Harmony Club; Xu Rongmao is chairman of the Overseas Chinese Club of Shanghai; Wang Zhentao of Aokang is chairman of the Wenzhou Business Association. The richer they are, the more likely they have a senior political appointment. The percentage of senior appointments in the Top 50 has shot up to 40% from 30% last year, almost triple the average. This year’s Top 50 includes 2 delegates to the 18th Party Congress, 5 to the NPC and 13 to the CPPCC. Hurun Research estimates a quarter of the Hurun Rich List 2014 to be members of the Communist Party. Stats: Another year of Record Highs Cut-off to make Top 1000 rose by 23% to US$400m. Despite adding 271 more people this year, the overall cut-off still rose 12%. The cut-off to make the Top 50 is now US$3.3bn, more than double that of pre the financial crisis and 14 times that of ten years ago. Cut-off (in US$m)

2014 US$m

2013 US$m

2012 US$m

2011 US$m

2010 US$m

Top 10 7500 6100 5400 5710 5240

Top 100 2300 1970 1670 1750 1510

Top 200 1500 1310 1110 1190 1000

Top 500 750 660 560 590 440

Top 1000 400 325 290 320 240 Source: The Hurun Research Institute 2014

Historical Stats

Year Cut-off US$m No. of people on list

Top 50 Cut-off US$m

No. of US$ billionaires

1999 6 50 6 1

2000 42 50 42 2

2001 60 100 110 1

2002 84 100 145 0

2003 110 100 180 0

2004 150 100 230 3

2005 60 400 320 7


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2006 100 500 525 15

2007 105 800 1,600 106

2008 100 1000 1,500 101

2009 150 1000 2,100 130

2010 150 1363 2,300 189

2011 320 1000 2,700 271

2012 290 1000 2,400 251

2013 325 1000 3,000 315

2014 330 1271 3,300 354

Source: The Hurun Research Institute 2014

Chinese Star Signs It has been a good year for dragons and oxen, and a bad year for rats and pigs. Rabbits lead the way for the umpteenth year. The richest man, Jack Ma, is a dragon, traditionally viewed as one of the most powerful of the Chinese star signs. Wang Jianlin is a horse. The richest self-made woman Chen Lihua, she is a snake. Don’t worry Pigs. You are well represented by Pony Ma Huateng of Tencent!

Rank (yoy change) Chinese Star Sign % Richest Individual

1 (same) Rabbit 12.0% Zhang Jindong

2 (+1) Dragon 11.2% Jack Ma

3 (-1) Snake 10.2% Chen Lihua

4 (same) Tiger 9.3% Liu Qiangdong

5 (same) Monkey 8.1% Robin Li

6 (-1) Horse 7.9% Wang Jianlin

7 (same) Ram 7.8% Li Hejun

8 (same) Dog 7.3% Zhang Shiping

8 (same) Rooster 7.3% Zong Qinghou

10 (+2) Ox 6.5% Zhou Jianping

11 (-1) Rat 6.3% Yan Jiehe

12 (-1) Pig 6.2% Ma Huateng

Source: The Hurun Research Institute 2014

Number Ones Over the Years Jack Ma is the eleventh Number One since records began in 1999. A far cry from the US, where the number one spot has been hogged by Bill Gates all these years.

Year Name

Age Wealth US$bn

1999 Rong Yiren 83 1


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2000 Rong Yiren 84 2

2001 Liu Yongxing, Liu Yonghao & brothers 53, 50 1

2002 Larry Rong Zhijian 60 0.85

2003 William Ding Lei 32 0.9

2004 Huang Guangyu 35 1


2006 Zhang Yin & family 49 3

2007 Yang Huiyan 25 18


2009 Wang Chuanfu 43 5

2010 Zong Qinghou 65 12

2011 Liang Wen’gen 55 11

2012 Zong Qinghou 67 12.6

2013 Wang Jianlin 59 22

2014 Jack Ma Yun 50 25.8 Source: The Hurun Research Institute 2014

Methodology The Hurun Rich List is a snapshot of wealth on 15 August 2014. The exchange rate used for US$ was RMB 6. The list relates to Mainland Chinese only, defined as someone born and brought up in Mainland China, no matter what passport they might hold today. So, Wang Wei, 43, of SF Express does not qualify for the list, because he spent most of his youth in Hong Kong, despite being born in Shanghai. Valuing the wealth of China’s richest is as much an art as it is a science. We have missed some people, but we believe the Hurun Rich List to be the most serious attempt to identify China’s top entrepreneurs and to measure their holdings. Our team of researchers has - for the sixteenth 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. For non-listed companies our valuation was based on a comparison with their listed equivalents using prevailing industry Price/Earnings ratios. This year, we have split out siblings, so companies like Anta have been split across four individuals. Under ‘industry’, we note the industries that make up a quarter of the wealth of the individual. Size of Market China today has 2.9 million dollar millionaires, 1.05 million individuals with personal wealth of CNY 10 million (equivalent to US$1.6 million and GBP 1 million). For more info on the Hurun Wealth Report 2014 released in September 2014, refer to http://www.hurun.net/EN/ArticleShow.aspx?nid=4558

http://www.hurun.net/EN/ArticleShow.aspx?nid=4558


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Hurun Rich List 2014 – Top 100, sponsored by Hainan Clearwater Bay of Agile

For the full list of the full list of 1271 people, please refer to www.hurun.net

Name

Wealth

US$m

Company

1 28 Ma Yun & family 25,000 Alibaba

2 -1 Wang Jianlin & family 24,200 Wanda

3 80 Li Hejun 20,800 Hanergy

3 -1 Zong Qinghou & family 20,800 Wahaha

5 -2 Ma Huateng 18,100 Tencent

6 0 Li Yanhong & Ma Dongmin 17,500 Baidu

7 40 Yan Jiehe & Yan hao 14,200 China Pacific Construction

8 -2 Yan Bin 10,000 Reignwood

9 248 Liu Qiangdong 8,800 JD.com

10 53 Lei Jun 7,500 Xiaomi Technology

11 -6 Yang Huiyan 7,300 Country Garden

11 -2 Zhang Jindong 7,300 Suning

11 11 Zhang Shiping & family 7,300 Weiqiao Pioneering

14 5 Wang Wenyin 7,200 Amer

15 -5 Xu Jiayin 7,000 Evergrande

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16 0 He Xiangjian & He Jianfeng 6,800 Midea

17 -5 Chen Lihua 6,700 Fu Wah International

17 -9 Xu Rongmao & family 6,700 Shimao

19 -1 Lu Guanqiu & family 6,600 Wanxiang

20 -8 Liu Yongxing & family 6,300 East Hope

20 16 Zhang Zhidong 6,300 Tencent

22 -18 Wei Jianjun & family 6,200 Great Wall Motor

23 2 Ding Lei 5,900 Netease

24 -3 Li Jinyuan 5,800 Tiens

24 -12 Lu Zhiqiang 5,800 FanHai

26 13 Lyu Xiangyang & Zhang Changhong 5,300 Guangzhou Youngy

26 -1 Zhu Yicai & Wu Xueqin 5,300 Yurun

28 9 Wang Chuanfu 5,200 BYD

29 -14 Liang Wengen 5,000 Sany

30 -13 Liu Yonghao & family 4,800 New Hope

30 -6 Zhang Yin 4,800 Nine Dragons Paper

32 9 Guo Guangchang 4,700 Fosun

32 -4 Wang Yusuo & Zhao Baoju 4,700 ENN


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32 119 Zhou Jianping & family 4,700 Hailan

35 -13 Wu Yajun & family 4,300 Longfor Properties

36 -4 Shi Yuzhu & family 4,100 Giant Investments

37 7 Huang Wei & Li Ping 4,000 XinHu

38 -19 Sun Guangxin 3,900 Guanghui

39 -29 Jiang Bin & Hu Shuangmei 3,800 GoerTek

40 -6 Huang Rulun 3,700 Century Golden Resources

40 -8 Pan Shiyi & Zhang Xin 3,700 SOHO China

40 4 Wang Wenxue 3,700 Fortune Land Development

43 -12 Gong Hongjia & Chen Chunmei 3,600 Hikvision Digital Technology

43 75 Jiang Zhaobai 3,600 Pengxin

43 20 Li Shufu & Li Xingxing 3,600 Geely

43 4 Pan Zhengmin & Wu Chunyuan 3,600 AAC Acoustic Technologies

47 -22 Chen Fashu 3,400 Xinhuadu

48 15 Chen Jianhua 3,300 Wujiang Henli Chemical Fibre

48 New Wei Qi & Wei Xiao 3,300 Tianhe Chemicals

48 -19 Zhu Mengyi & family 3,300 Hopson, Pearl River

51 -17 Chen Zhuolin & family 3,200 Agile Property


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51 -12 Huang Guangyu & family 3,200 Pengrun Investment

51 -7 Jia Yueting 3,200 Letv

51 -4 Rong Zhijian 3,200 Citic Pacific

51 -4 Wei Shaojun 3,200 Longjitaihe

51 47 Xiao Jianhua & Zhou Hongwen 3,200 Tomorrow Holding

57 22 Qiu Guanghe & family 3,100 Semir

58 -11 Cai Kui & family 3,000 Longfor Properties

58 -17 Du Shuanghua 3,000 Rizhao Iron and Steel

58 -11 Shi Wenbo 3,000 HengAn

61 -14 Shen Guojun 2,900 China Yintai

61 36 Sun Shoukuan & family 2,900 Jiacheng

61 -4 Xu Lianjie 2,900 HengAn

61 151 Xue Guanglin 2,900 Brightoil

61 31 Yuan Yafei 2,900 Sanpower

61 -2 Zhang Zhixiang 2,900 Jianlong

61 New Zheng Jianming 2,900 Shunfeng PV

68 30 Chen Tianqiao & family 2,800 Shanda

68 304 Lin Yi 2,800 Shenglong


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68 82 Liu Zhongtian 2,800 Zhongwang

68 15 Zhang Hongwei 2,800 Orient

68 -1 Zhu Linyao 2,800 Huabao International

73 10 Du Sha & family 2,700 Homeworld

74 5 Fang Wei 2,600 Fangda

74 249 Guo Wengui & family 2,600 Zhengquan Property

74 -27 Ye Chenghai & Liao Qingqing 2,600 Salubris Pharmaceuticals

74 -17 Zhang Li & Zhang Liang 2,600 R&F

78 134 Che Jianxing 2,500 Macalline

78 New Chen Hongtian & Yao Lini 2,500 Cheung Kei

78 -6 Lin Xiucheng & Lin Zhiqiang 2,500 Sanan

78 98 Shao Zhongyi 2,500 Chenxi

78 New Zhang Lei 2,500 Hillhouse

83 8 Feng Hailiang 2,400 Hailiang

83 -11 Li Li & Li Tan 2,400 Hepalink

83 650 Pang Kang 2,400 Haitian

83 -11 Song Zuowen & family 2,400 Nanshan

83 -11 Yu Yong 2,400 Cathay Fortune Corp


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83 51 Zhao Buchang & Zhao Tao 2,400 Buchang

83 82 Zhou Hongyi 2,400 Qihoo

90 -17 Cai Dongqing & family 2,300 Alpha Animation

90 99 Che Fengsheng 2,300 Sihuan Pharm

90 34 Chen Jinxia 2,300 Yongjin

90 -66 Fu Liquan & Chen Ailing 2,300 Dahua Technology

90 -2 Huang Maoru & Zhang Jing 2,300 Maoye

90 -49 Huang Nubo 2,300 Zhongkun

90 2 Huang Wenzai 2,300 Star River

90 34 Lin Li 2,300 Liye

90 -7 Liu Hanyuan & Guan Yamei 2,300 Tongwei

90 34 Liu Yiqian 2,300 Sunline

90 111 Luo Shaoyu & Zhao Jiehong 2,300 Dongyin

90 -27 Ma Xingtian & family 2,300 Kangmei

90 8 Miao Shouliang 2,300 Fuyuan

90 -18 Ni Zhaoxing & family 2,300 Zhongrong

90 -41 Shen Wenrong 2,300 Sha Steel

90 -2 Sun Piaoyang & Zhong Huijuan 2,300 Jiangsu Hengrui Medicine


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90 -17 Wen Yibo & Zhang Huiming 2,300 Sound Environment

90 8 Xu Yu & Li Shanhu 2,300 Trendy International

90 18 Xue Xiangdong & family 2,300 DHC Digital Technology

90 358 Yan Xijun & family 2,300 Tasly

90 New Zhang Jun 2,300 Fu De

90 28 Zhu Gongshan 2,300 Golden Concord Holdings

About Hainan Clearwater Bay of Agile Developed by Agile Property Holdings Limited, Hainan Clearwater Bay is a large-scale project based in the South of Hainan Island, close to Sanya. Covering an area of 15,000 mu, with over 10 million square meters of development and a total investment of RMB20 billion, Hainan Clearwater Bay of Agile is listed as a key construction project of the "12th Five-Year Plan” of the Hainan government. Hainan Clearwater Bay is developed by Agile Property Holdings Limited, a listed company in Hong Kong in collaboration with Morgan Stanley, and is well placed to become a world-class new coastal holiday resort. The project boasts high-end supporting facilities including 6 international five-star resort hotels (including Jumeirah, Raffles, Intercontinental, JW Marriott, Hilton Resorts and Outrigger) and 2 world-class marinas to be built along the 16-kilometer landscape avenue and 12-kilometer coastline. It will take the lead in implementing Hainan’s international tourism island development strategy and becoming a new image of the international tourism island by leveraging the scarcity of global natural resources, forward-looking integrated development planning, and world-class award-winning supporting high-end facilities. At present, after approximately 6 years of development and construction, this holiday resort is

maturing. A group of six development including Golfer’s Paradise (金色果岭), Côte d'Azur (蔚

蓝海岸), Silver Sand (瀚海银滩), The Galaxy (星海传说), Azure Oasis (蔚蓝高尔夫) and River

Park (碧海帆影) are completed. Among them, Golfer’s Paradise, Côte d'Azur and The Galaxy

have been put into service. The lakeside Commercial Street of the Côte d'Azur started business in October 2009, and can meet the requirements of property owners. The large comprehensive farmers market built by the domestic renowned commercial management company will be open in the first half of this year. The slogan “It is Your Second Life” has struck a chord amongst China’s wealthy elite, attracting 10,000 of them to become owners. The ultimate dream for coastal living.


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About Hurun Report Inc. Nobody Knows China’s Rich Better! Established as a research unit in 1999 by British accountant Rupert Hoogewerf, Hurun Report Inc. has grown into a leading media group based in Shanghai, China. Hurun Report Inc. has a stable of six titles (2 digital and 4 print), the Hurun Research Institute and an active business events division targeting China’s entrepreneurs and high net worth individuals. The flagship Hurun Report magazine is published monthly and reaches the households of 116,000 proven wealthy Chinese individuals and their advisers. Hurun Report is best known for its annual Hurun China Rich List, widely considered the bible of wealth and de-facto Who’s Who of Chinese business. Hurun Report Inc. also publishes the Hurun Schools Guide series, Wings & Water and Horse & Polo China. The Hurun Schools Guide series explains the respective education systems of various destinations such as the UK, US, Canada, Australia and New Zealand, Switzerland and Singapore, issues parents need to take into consideration when making the transition from the Chinese system, and lists the top preparatory, secondary and undergraduate schools. Wings & Water is for the so-called lion kings of China; those individuals who lead industry and shape opinions. It addresses the needs of those entrepreneurs looking to purchase a jet or yacht, as well as setting out how to maintain these big and costly machines. Horse & Polo China provides in-depth coverage about horse related issues including features on Polo, Dressage, Horse Racing, Bloodstock as well as Dogs and Croquet. The magazine is designed to be the glamorous companion for wealthy Chinese with a passion for horses. For further information, see www.hurun.net For media inquiries, please contact: Hurun Report Porsha Pan Tel: 021-50105808*601 Mobile: 139 1838 7446 Email: [email protected]

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Hurun institute 2014

Business

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