The latest Hurun 100 list shows that 318 of the world’s 610 new billionaires are in China, compared to 95 in the United States, and China has become the first country to have thousands of billionaires.
So why is the number of Chinese billionaires far greater than that of the United States? Why are Chinese billionaires far less charitable than their American counterparts?
The world economy was hit hard by the New Coronavirus (a Chinese Communist virus) Epidemic that swept the world last year. However, this does not seem to have hindered the rate at which China’s wealthy have accumulated their wealth.
The number of Chinese tycoons is soaring
A total of 1,058 Chinese billionaires are known to have made the Hurun 100 list last year, far exceeding the number of 696 moguls in the United States. Meanwhile, Hurun’s report also said that China became the only major economy to see growth last year, with one of every two “rising stars” being Chinese, accounting for 318 of the 610 “seats” for the world’s newest billionaires, compared to 95 in the United States. The “newcomers”.
The U.S. private institution “Institute for Information and Strategic Studies” economist Li Hengqing analysis, China through the national efforts to strictly control the epidemic, resume work and production, so that China’s economic recovery speed relatively faster. In addition, the exchange rate change “added”, so that the Chinese rich “pocket” more full.
“In the past 10 months, the RMB has been appreciating very fast against the US dollar, which has been depreciating and has exceeded seven to one. From this perspective, the appreciation of the yuan has outpaced GDP growth, causing China’s wealth to accumulate by leaps and bounds. If they switched to the dollar, then they would indeed see a massive increase in wealth.”
The yuan has risen sharply against the U.S. dollar since last June and has now appreciated nearly nine percent from June 1 of last year.
Emerging industries with the fastest wealth appreciation?
Hurun’s report mentions that Glittering Zhong, the founder of Nongfu Shanquan, the latest to enter the list, is ranked seventh, with about $85 billion in assets. The company’s initial public offering was once one of the hottest-selling stocks in Hong Kong, with a record HK$667 billion (US$87 billion) capitalization.
Huang Zheng, the founder of “Poundland,” which has become rich through e-commerce, electric cars, blockchain and biotechnology, among the fastest-growing industries in the past year, was among the top 20 billionaires, with his wealth growing by about 286 percent to $69 billion. Among the electric car moguls on the list, Li Bin, CEO of Azera, saw his assets grow the fastest, rising 10-fold to $10 billion.
For China’s “old” rich, Tencent founder Ma Huateng’s assets rose 70 percent to $74 billion, ranking 14th on the list. Jack Ma‘s Family fell four spots to 25th, although its assets rose 22 percent to $55 billion.
The report also said that soaring global stock markets, such as the Nasdaq and Shenzhen, which rose 44 percent and 35 percent respectively, drove the growth in global wealth.
Wang Jian, a veteran economic media personality in the U.S., told the reporters that there are only two ways for a Chinese tycoon to get rich, one is by asset securitization; the other is corporate development opportunities, and whichever way he gets wealth, it must be tied to politics.
“Asset securitization is his company listed, once listed he became a rich man. The second is to grasp the trend, like Poundland, came across a development opportunity, Taobao market share him a piece. No matter which way it is, you must have a Politburo member level behind you to cover you in order to have the conditions to become rich, otherwise you will be black to fight.”
To donate or not to donate?
It is worth noting that the United States and China, the world’s largest economies, have the largest number of tycoons in the world, and this Time there are nearly twice as many Chinese moguls on the Hurun 100 list than in the United States. However, the U.S. tycoons seem to be more willing to give to charity. For example, while the U.S. tycoons Warren Buffett, Bill Gates and Zuckerberg have said they will donate most of their wealth, and Bezos and Musk have pledged to donate at least half of their wealth, China’s top tycoons rarely publicly declare that they will donate most of their wealth.
In an interview with our correspondent, Wang Jian “corrected” the name of the Chinese tycoons, saying that in fact, the Chinese people are very much advocating charity, and the tycoons do not want to donate, but are unable to do so.
“In terms of mentality, their motivation to do charity is not that great. The rich people are not secure, the money will be taken away by the government at any time, how to do charity? There is no bottom in mind. Another problem is the official monopoly of charity, all charity must go through the China Charity Federation and the Red Cross, but these two institutions are corrupt (seriously), and constantly suppress private charities.”
He lamented that since the establishment of the Chinese Communist Party, the gentry class no longer existed and China’s charity Culture has been cut off since then.
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