The country's roaring stock market and soaring property prices have generated wealth for so many that the mainland now has more billionaires than any place other than the United States, according to a list released yesterday.
The list has 106 US dollar billionaires, compared with 15 last year and none in 2002, according to the popular annual The Hurun Rich List - compiled by Shanghai-based independent analyst Rupert Hoogeperf.
Out of the top 10, nine own listed companies - six are real estate developers and two also derive a large percentage of their wealth from real estate, indicating that the country's economic growth is largely driven by construction and manufacturing.
The total wealth of the 800 richest Chinese reached US$459.3 billion, or 16 percent of the country's GDP last year. Their average wealth more than doubled in the past year to US$562 million.
"China's richest have reaped windfalls from a sharp hike in property prices and the burgeoning stock markets," said Hoogeperf.
But Beijing-based investment banker Andrew Zhang said: "The list shows up bubbles in the economy. The rich have accumulated their wealth with little technology, branding or international networks."
Yang Huiyan - the 26-year-old woman who was No. 1 on Forbes wealth list released this week - remains top on the Hurun list with a personal fortune reaching US$17.5 billion, transferred from her property developer father.
Her fortune comes from a 59.5 percent stake in Country Garden Holdings, a south China real estate developer founded by her father. The company's initial public offering in Hong Kong in April raised the equivalent of US$1.9 billion and its shares closed yesterday at HK$13.12 - more than double the IPO price.
She is followed by 50-year-old Zhang Yin, last year's topper, who saw the value of her shares in Nine Dragon Paper triple to $10 billion following a surge in the Hong Kong stock market.
Xu Rongmao, 57, owner of Shimao Property Holdings Ltd comes in at No 3. He has seen his wealth grow to US$7.5 billion, up US$5.5 billion from last year.
Huang Guangyu, 38, who founded Gome Electrical Appliances Holdings and owns unlisted property businesses, is fourth with US$6 billion.
Guo Guangchang, whose Fosun Group has investments in property, retail, steel, pharmaceuticals and mining, rejoins the top 10 for the first time in four years after raising US$1.5 billion from a Hong Kong listing in June.
Surging share prices created much of the wealth of those on Hoogewerf's list.
Nine made it due to shareholdings in Minsheng Banking Corp - the most prominent creator of super-rich of any Chinese company.
Ping An Insurance (Group) Co, China's second-largest life insurer, and Western Mining Co, a zinc and lead miner, were each responsible for the wealth of seven on the list.
(China Daily October 11, 2007)
