Evergrande's Xu Jiayin became China's richest person for the first time with 290 billion yuan, making him the 12th Chinese richest person in the 19-year history of the Hurun Rich List. This year, what interesting changes have occurred in the distribution of China's wealthy?

On October 12, the Hurun Research Institute released the "36 Strategies · Hurun Rich List 2017." This is the 19th consecutive year that the Hurun Research Institute has published the "Hurun Rich List" since 1999, and the threshold for inclusion has remained at 2 billion yuan for five consecutive years. The cutoff date for calculating the wealth of the listed billionaires is August 15 this year, consistent with last year.

This year, a total of 2,130 entrepreneurs have wealth of 2 billion yuan or more, an increase of 74 from last year. The total number of listed individuals has doubled compared to five years ago, is nearly three times that of ten years ago, and more than 20 times that of 15 years ago. The average wealth of listed entrepreneurs has increased by 12.5% from last year to 8.1 billion yuan, with the growth rate nearly twice the GDP growth rate. The top 100 have an average increase of 60%.

Hurun said: "The higher the ranking, the faster the wealth growth."

2017 Hurun Rich List TOP 10

Among this year's top 10, the most are from the IT industry, with 4, the same as last year; those involved in real estate have decreased by half to 3. The threshold for the top 10 has increased by 41% from last year, breaking through 100 billion to 110 billion.

Hurun said: "This year, the threshold for the top 100 on our global rich list is 83 billion, and these top 10 individuals can all make the global top 100." The average age of the top 10 is 49, five years younger than last year's top 10. Among the top 10, the most live in Guangdong, with 4; followed by Zhejiang with 3, Beijing with 2, and Jiangsu and Hong Kong with 1 each.

59-year-old Evergrande's Xu Jiayin became China's richest person for the first time with 290 billion yuan, making him the 12th Chinese richest person in the 19-year history of the Hurun Rich List. In addition, Xu Jiayin ranked third on this year's Hurun Charity List with donations of 1.24 billion yuan, and later Evergrande donated another 400 million yuan during this year's "Guangdong Poverty Alleviation Day."

Hurun said: "Xu Jiayin's wealth growth mainly occurred in the past six months, increasing by 200 billion, an average of 1 billion per day, which is the fastest wealth growth since 1999."

Xu Jiayin

46-year-old Ma Huateng's wealth increased by 85 billion, surpassing Ma Yun to rank second with 250 billion. Recently, Tencent's stock price has repeatedly hit new highs, with an increase of over 60% this year. WeChat's combined monthly active accounts are close to 1 billion. Tencent's achievements also benefit from the game "Honor of Kings," which has a user base of 200 million. Tencent entered the Fortune Global 500 for the first time this year, with a market value close to 3 trillion.

53-year-old Ma Yun and his family's wealth shrank by 2%, falling to third with 200 billion. Alibaba's stock price has performed well this year, rising from less than $90 at the beginning of the year to the current $178, with Alibaba's market value exceeding 3 trillion. In the first half of this year, Alibaba's sales exceeded 50 billion yuan, a year-on-year increase of 56%. Ant Financial's market value has also exceeded 400 billion. Alibaba entered the Fortune Global 500 for the first time this year. The Alibaba system has 43 shareholders on the list this year.

Hurun said: "Although Alibaba's stock price has doubled and Ant Financial is also performing well, Ma Yun's stake in Ant Financial has decreased from 35.5% last year to 1.2%, similar to Ren Zhengfei, who has an ultra-low stake in Huawei. If Ma Yun had not 'given away' his stake in Ant Financial, he would still be China's richest person."

36-year-old Yang Huiyan's wealth increased by more than 100 billion, rising rapidly from 22nd last year to fourth with 160 billion. Yang Huiyan is the only woman in this year's top 10.

63-year-old Wang Jianlin and his family's wealth shrank by 60 billion, bidding farewell to the richest person throne, ranking fifth with 155 billion. This is the first time in five years that Wang Jianlin has fallen out of the top three.

29-year-old Wang Sicong has personal wealth of 5 billion. In addition to his wealth in the Wanda Group, his independently operated Pusi Capital has also benefited greatly from the internet live streaming economy. The Wang Jianlin family ranked sixth on this year's Hurun Charity List with donations of 650 million yuan.

In addition, 47-year-old SF Express's Wang Wei appeared on the Hurun Rich List for the first time with 150 billion, ranking sixth. Baidu's Li Yanhong and Ma Dongmin's wealth increased by 28%, rising one place to seventh with 125 billion. Midea's He Xiangjian and He Jianfeng's wealth increased by 47%, rising two places to eighth with 115 billion.

46-year-old NetEase's Ding Lei's wealth increased by 10%, ranking tenth with 110 billion, down four places from last year.

Wang Wei Image source: Visual China

54-year-old Geely's Li Shufu and his 32-year-old son Li Xingxing's wealth increased by nearly 80 billion, entering the top 10 for the first time with 110 billion. Li Shufu surpassed BYD's Wang Chuanfu to become the new "Automobile King."

This year's top 10 has changed significantly compared to last year. Those who fell out of the top 10 include Baoneng's Yao Zhenhua, who was stripped of his qualification as chairman of Foresea Life Insurance by the China Insurance Regulatory Commission and banned from the insurance industry for 10 years; Wahaha's Zong Qinghou, whose performance slowed; and Huabin's Yan Bin, who was sued by Thailand's TCP Group. In addition, Suning's Zhang Jindong and Oceanwide's Lu Zhiqiang still saw growth, but their increases did not keep up with the high growth of Xu Jiayin, Li Shufu, and Yang Huiyan.

Industry Distribution of the Wealthy: 30% from Manufacturing

Manufacturing, including intelligent manufacturing, machinery manufacturing, daily necessities, furniture, plastic products, home appliances, and industrial electrical products, remains the industry with the most listed entrepreneurs, rising from 26.2% last year to 27.9%, but wealth is relatively dispersed. Advanced manufacturing, mainly Midea and Lens Technology, has risen significantly.

The threshold for the top 50 in advanced manufacturing is 6.5 billion, with an average wealth of 15.6 billion. Many companies are beginning to integrate high technology into traditional manufacturing to transform into intelligent manufacturing.

Hurun said: "Manufacturing is definitely the number one industry for Chinese entrepreneurs, with 30% relying on it to make the list. Next is real estate, which is only half of manufacturing."

The proportion of real estate entrepreneurs continues to decline, from 15.4% last year to 14.6%, but it still ranks second. The total wealth in the real estate industry is rising, with the threshold for the top 50 at 12 billion and an average wealth of 31.3 billion. Affected by purchase restriction policies, the heat in the real estate market has decreased.

The IT and financial investment industries have slightly increased, with IT's proportion rising from 11.8% to 11.9%, ranking third, and financial investment's proportion rising from 10.8% to 10.9%, ranking fourth. Many emerging industries and unicorn companies come from IT-related industries. The average wealth of the top 50 in IT is 27.4 billion.

The pharmaceutical industry has also slightly increased, from 6.6% to 6.7%. The pharmaceutical industry on the list generally has relatively high wealth increases. WuXi Biologics, founded by Li Ge, successfully listed in Hong Kong, and WuXi AppTec also plans to list on the A-share market.

The social services industry has risen the fastest this year, from 2.4% to 3.3%. Currently, many companies favored by capital are mainly in this industry, such as Meituan-Dianping, Ele.me, and this year's new entrants Mobike and Ofo.

Other industries performing well include education, new retail, automotive, and food. New energy has performed poorly, decreasing from 2.1% to 1.3%. Traditional retail has performed poorly, causing the proportion of the entire retail industry to decline from 4.7% to 2.9%. Some old retail enterprises and supermarkets have closed due to poor management, such as Shenzhen Xinyijia Supermarket, which declared bankruptcy due to heavy debt.

The proportion of listed individuals in the culture and entertainment industry has slightly decreased, from 3.2% to 3%, relatively stable.

2017 Distribution of Chinese Mainland Wealthy by Industry

Regional Distribution of the Wealthy: Guangdong Businesspeople Most

The Guangdong-Hong Kong-Macao Greater Bay Area has become a wealth gathering place, with a total of 467 entrepreneurs on the list. Beijing remains the city where most entrepreneurs prefer to live, with 300 listed entrepreneurs living in Beijing, a decrease of 22 from last year.

Shenzhen has further widened the gap with Shanghai, ranking second with 223, an increase of 28 from last year. Shanghai remains third with 173, an increase of 11 from last year. Hangzhou remains fourth with 153, an increase of 30 from last year. This year, Hangzhou has the largest increase in numbers, followed by Shenzhen.

From the perspective of entrepreneurs' birthplace, Guangdong businesspeople surpassed Zhejiang businesspeople for the first time this year, ranking first with 284, an increase of 52 from last year; Zhejiang businesspeople have 263, an increase of 15 from last year. Ranked third is Jiangsu businesspeople, with 133, an increase of 12 from last year.

Top 20 Places of Residence for the Wealthy

Guangdong remains the region with the most entrepreneurs establishing corporate headquarters, with 457, an increase of 51 from last year; Beijing remains second with 312, but a decrease of 30 from last year; Zhejiang remains third with 306, an increase of 28 from last year; the fastest rising regions are Guizhou and Ningxia, followed by Tianjin and Xinjiang.

Compared to last year, there are 16 new regional richest people. Only 43 listed entrepreneurs have established corporate headquarters outside mainland China, with Hong Kong having the most at 37; the United States second with 4; and the United Kingdom and Macau tied for third with 1 each.

Among the listed entrepreneurs, companies that paid over 10 billion in taxes last year include: Huawei over 80 billion, Ping An of China 74.6 billion, Evergrande over 45 billion, Wanda 31.75 billion, and Alibaba and Ant Financial combined 23.8 billion.

Hurun said: "The listed entrepreneurs paid over one trillion in taxes last year, accounting for 6% of China's total fiscal revenue."

Among the listed entrepreneurs' companies, those with more than 100,000 employees include: Taikang with 27,000 internal staff and 650,000 external staff, BYD with 190,000, Huawei with over 170,000, Wanda with 156,000, Midea with 130,000, SF Express with 120,000, and Evergrande with over 100,000.

The proportion of those with political influence has rebounded from 9.4% last year to 10% after declining for two consecutive years. Five years ago, the proportion of listed entrepreneurs with political influence was as high as 15%, and ten years ago it was also 10%.

Age Distribution: 6 "Post-90s" on the List

The average age of the entire list is 54, one year older than last year. Hurun said: "Chinese entrepreneurs have been starting businesses for an average of 24 years, starting at 29, listing at 44, and making the list at 50."

100 "Post-80s" are on the list, an increase of 32 from last year. Among them, 39 are self-made, 18 more than last year, and basically all are in the IT industry. Peking University alumnus, the new "Education King," TAL Education's 37-year-old Zhang Bangxin became the first "Post-80s" self-made richest person with 40 billion in wealth; followed by DJI's 37-year-old Wang Tao, with 36 billion in wealth.

36 "Post-85s" are on the list, an increase of 18 from last year. Among them, 6 are self-made, 3 more than last year. Auto parts supplier Century Huatong's 32-year-old Shao Heng became the "Post-85s" self-made richest person, with 5.5 billion in wealth.

6 "Post-90s" are on the list, an increase of 3 from last year. Ofo's 26-year-old Dai Wei became the first self-made "Post-90s" on the list with 3.5 billion in wealth.

Dai Wei

The average age of the entire list is 54, one year older than last year. Hurun said: "Chinese entrepreneurs have been starting businesses for an average of 24 years, starting at 29, listing at 44, and making the list at 50."

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