XU JIAYIN OF EVERGRANDE CHINA’S RICHEST PERSON WITH US$43BN, AFTER 6MTH GAIN OF US$30BN

PONY MA OF TENCENT OVERTAKES JACK MA OF ALIBABA TO CLAIM SECOND PLACE.

ASTOUNDINGLY 43 INDIVIDUALS FROM ALIBABA AND ANT FINANCIAL MAKE LIST

2130 INDIVIDUALS WITH US$300M, TOTAL WEALTH USD 2.6 TRILLION, EQUIVALENT TO THE UK GDP

AVERAGE WEALTH GROWS 12.5%, ALMOST DOUBLE GDP, WITH TOP 100 SHOOTING UP 60%

647 DOLLAR BILLIONAIRES, UP 53 FROM LAST YEAR AND UP 396 FROM 5 YEARS AGO

‘CAR KING’ LI SHUFU OF GEELY UP US$12BN TO BREAK INTO TOP 10 FOR FIRST TIME

‘BIKE SHARING KING’ DAI WEI, 26, OF OFO YOUNGEST SELF-MADE ENTREPRENEUR

SOUTH CHINA’S ‘SILICON VALLEY’ LEADS WITH 467 INDIVIDUALS, AHEAD OF BEIJING

HURUN REPORT - LEADING AUTHORITY ON CHINA’S WEALTHY - RELEASES CHINA RICH LIST 2017 IN ASSOCIATION WITH LEADERSHIP TRAINING PLATFORM 36G

l  1184 saw their wealth increase, of which 348 are new faces. 2130 individuals, up 74 since last year, with a wealth cut-off of US$300 million. Average wealth rose 12.5% to US$1.2 billion, with the Top 100 shooting up 60% yoy. Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher, said, “This year we found more than 2000 individuals with US$300m, double that of five years ago and four times that of ten years ago. Overall, though, the Hurun Rich List has grown faster than any year since 2007, with the possible exception of 2015.””

l  Property tycoon Xu Jiayin, 59, of Evergrande, saw his wealth all but quadruple to US$43bn, to become the twelfth person to top the list since records began 19 years ago. Pony Ma, 46, of Tencent, rose 52% to US$37bn, surpassing Jack Ma, 53, of Alibaba to second place. “The ‘Big Two’ are still from real estate and IT, however this year Xu Jiayin replaced Wang Jianlin, and Pony Ma replaced Jack Ma.” said Hoogewerf.

l  Three new faces made the Top 10: real estate developer Yang Huiyan, 36, of Country Garden, ‘Delivery King’ Wang Wei of SF Express, and Li Shufu of Geely.

l  Alibaba and its affiliate Ant Financial have 43 shareholders on this year’s list. Rupert Hoogewerf said: “China’s entrepreneurs have come a long way.  Back in 1999, when I put out the first list, I managed to rank 50 people. Today we have almost that number just from Alibaba!” According to the latest records, Jack Ma’s holdings in Ant Financial have sunk from 35% down to 1.2%, which is on a par with Ren Zhengfei’s shareholding in Huawei.  Hoogewerf continued, “Had Jack Ma kept his 35%, he would have been China’s Number One.”

l  By industry, the Big 3 wealth creating industries are manufacturing, real estate and IT. Real estate is down slightly on number of individuals compared with last year.

l  Big winners. Real estate developer Sun Hongbin of Sunac, Ant Financial CEO Peng Lei, Zhang Yiming, 34, of Toutiao (wealth up more than ten-fold in one year) and newly-listed Furniture Tycoon Yao Liangsong of Oppein broke into the Top 100.

l  Down. Jia Yueting of LeEco dropped down from 31^st place last year to 1978^th place, after supply chain and cashflow problems that resulted in his wealth down by 95%.

l  Industries. Manufacturing is now by far the key industry for the rich list, for 28% of the list, up 2% on last year and 8% on five years ago. Second comes real estate, the key industry for 15% of the list, down 1% on last year and 5% on five years ago. TMT, investments and healthcare grew slightly to 12%, 11% and 7% of the list, up 7%, 2% and 1% on five years ago. “It has been a good year for manufacturing, cars, education, TMT and healthcare,” says Hoogewerf.

l  Millennials. ‘Education King’ Zhang Bangxin, 37, of TAL officially becomes the richest millennial after seeing his wealth triple to US$6bn, followed by ‘Drone King’ Wang Tao, 37, of DJI Innovations. There are 148 individuals under 40, 33 less than last year, of which 71 are self-made, up 7. “There has been a strong surge in entrepreneurship amongst university graduates in the past five years,” says Hoogewerf.

l  Average age 54 years, one more than last year. Rupert Hoogewerf said: “The rich lister started out 24 years ago on average at the age of 29.”

l  Residence. Beijing is still the preferred city of residence for 300 individuals, down 22 from last year, ahead of Shenzhen with 224, 29 up on last year. Hangzhou is catching up Shanghai fast. Shanghai hangs on to third spot with 173, up 11, followed by Hangzhou with 153, up 30.

l  Birthplace. Guangdong entrepreneurs overtook Zhejiang for the first time, up 52 to 284.

l  26% are women, 2% more than last year, of which 70% are self-made. Yang Huiyan reclaimed the title of richest woman in China for the first time in 11 years.

l  Political appointments up. 213 individuals or 10%, up from 9.4% last year, are delegates to the National People's Congress or CPPCC, with the NPC delegates up by 26 to 125, and CPPCC delegates up by 11 to 88. 3 are delegates to the 19^th Party Congress starting on 18 October. “The Hurun Rich Listers have become important stakeholders in the economy, with the companies they founded employing the best part of 2% of the workforce and paying 6% of the total tax revenues.”

l  Going global. “Foreign exchange restrictions put in place recently have made it harder for rich listers to move money overseas,” says Hoogewerf.

l  In trouble with the law. 5 of trouble with the authorities, with Xiao Jianhua of Tomorrow Holdings the highest profile. Xiao still makes the list with US$4.5bn. US-based Guo Wengui is off the list this year.

l  Chinese star signs. It has been a good year for those born in the Year of the Dragon, although Rabbits lead the way for the umpteenth year.

l  Hurun Research has grown to become the World’s Largest Rich List compiler.

(12 October 2017, Shenzhen) The Hurun Research Institute today released the Hurun Rich List 2017 in association with China-based training platform 36G. This is the 19th annual ranking of the richest individuals in China. Wealth calculations are a snapshot of 15 August, the same date as previous years.

Over the past year, 1184 saw their wealth increase, of which 348 are new to the list. 2130 individuals found, up 74 since last year, with a wealth cut-off of US$300 million. Average wealth rose 12.5% to US$1.2 billion, with the Top 100 shooting up 60% yoy. Total wealth amounted to US$2.5 trillion.

The HK stock market had a good year, up 19% to 27,000 points, whilst the Shanghai index was up 4% over the last year.

Dima Xiuer, CEO and founder of 36G, said “So many of China’s entrepreneurs have grown into world-class business leaders over the past few years. We are delighted to be working with the world’s largest rich list compiler Hurun Report on this list.”

This is an English language summary of the full Chinese press release which can be found at www.hurun.net. For media enquiries please contact our public relations team whose contact details can be found at the end of this report.

The Top 10

There are 3 new entries to the Top 10: Yang Huiyan of Country Garden, Wang Wei of SF Express and Li Shufu & Li Xingxing of Geely. 4 made their money from IT, same as than last year, 3 are real estate tycoons. The cut-off to make the Top 10 increased 41%, to US$16.4bn. All would now make the Top 100 of the Hurun Global Rich List. Average age is 49, five less than last year. Half of the Top 10 are based in Guangdong, South China.

Source: Hurun Rich List 2017, in association with 36G

↑Rank increase yoy ↓Rank decrease yoy *New to Top 10

Xu Jiayin, 59, of Evergrande saw his wealth soar almost four-fold to US$43bn to become China's Number One for the first time, taking on the mantle of Wang Jianlin, last year’s Number One, who dropped down to 5th place.

Pony Ma Huateng, 46, climbs to second place with a net worth of US$37bn. Tencent's share price has surged more than 60% this year, on the back of WeChat’s continued domination, and a strong performance in its online games. Pony Ma has been one of the most aggressive dealmakers this past year, taking – amongst others – a 5% stake in Tesla for US$1.8bn. Tencent saw its market value soar to US$400 billion and break into the Fortune Global 500 for the first time.

Jack Ma Yun, 53, & family dropped down one place to third, with his wealth down 2% to US$30bn, despite a doubling in the stock value of Alibaba. The main reason for his drop, was a reduction in his ownership of Ant Financial, the mother ship of Alipay, from 35.5% last year to 1.2% this year, which resulted in an increase of 25 shareholders in Ant Financial making the list this year.

Yang Huiyan, 36, of Country Garden, saw her wealth triple to US$24bn, shooting her back into the Top 10 straight into 4^th spot, ahead of last year’s Number One Wang Jianlin. Country Garden, set up by her father Yang Guoqiang, had sales in the first three quarters of this year of US$60bn.

Wang Jianlin, 63, of Wanda, and family wealth shrank by 28% to fifth spot with US$23bn. This is the first time Wang has fallen out of the Top Three in five years. In July, Wang sold off much of Wanda’s theme parks and hotels to Sunac and R&F, run by fellow billionaires Sun Hongbin and Zhang Li. Wang continues to derive much of his wealth from his cinema chain. Wang ranked 6th on the Hurun Philanthropy List 2017 with a donation of US$100 million.

‘Express Delivery King’ Wang Wei, 47, of SF Express, came in at sixth with US$22bn, after a successful IPO in February this year. Last year, SF’s sales hit CNY 57.5 billion.

Robin Li Yanhong & Melissa Ma Dongmin of Baidu rose one spot to 7th place after a 28% rise to US$19bn.

He Xiangjian & He Jianfeng, of Midea, rose to 8th after a 47% surge to US$17bn. One of the most aggressive cross-border dealmakers in the past year, Midea has acquired businesses in Germany, Japan and Italy, and has ambitions to become a world leader for robotics.  Midea currently has 130,000 employees.

‘Road King’ Yan Hao, 31, & family held on to eighth with US$17bn, up 15%. China Pacific Construction made the Top 100 of the Fortune Global 500 for the second year running, and has 300,000 employees. Earlier this year, it moved its global headquarters to Xinjiang, to take advantage of the building spree generated by the One Belt One Road policy.

William Ding Lei, 46, dropped down four places to tenth despite growing his wealth by 10%.

Li Shufu, 54, and son Li Xingxing, 32, saw their wealth surge almost four-fold to break into the Top 10 for the first time with US$16bn. Last year, Geely sold 770,000 vehicles, with annual sales volume reaching up 80% year on year. Li has overtaken Wang Chuanfu of BYD to become the ‘Car King’ of China.

Out of Top 10

Five dropped out of last year’s Top 10. Three whose wealth declined: Yao Zhenhua of Baoneng, who was banned from the insurance industry for 10 years; Zong Qinghou of Wahaha, who saw sales decline by a third; Yan Bin of Reignwood, who is currently in dispute with Red Bull over the China rights to the brand. And two whose wealth did not manage to grow fast enough to keep pace with the Top 10: Zhang Jindong of Suning and Lu Zhiqiang of Oceanwide.

Industry Analysis

Source: Hurun Rich List 2017, in association with 36G

↑ Rank increase yoy  ↓ Rank decrease yoy  - No Rank change yoy  *New to this

Residences

Beijing leads, followed by Shenzhen.  Shanghai hangs on to third spot from Hangzhou.

Source: Hurun Rich List 2017, in association with 36G

↑ Rank increase yoy  ↓ Rank decrease yoy  - No Rank change yoy  *New to this

Companies with the largest number of rich listers

Source: Hurun Rich List 2017, in association with 36G

Political appointments

3 are delegates to the 19th Party Congress: ‘Shandong Corn King’ Li Denghai (US$1bn), for the third session, ‘Hubei Alcohol Tycoon’ Wu Shaoxun (US$1.3bn) and ‘Milk King’ Pan Gang of Yili (US$900m).

213 are delegates to the NPC or CPPCC, up 19 from last year. Delegates to the NPC are up 26 to 125, and CPPCC up by 11 to 88. 7 are standing committee members of the CPPCC: Xu Jiayin, Lu Zhiqiang, Wang Wenbiao, Nan Cunhui, Sun Yinhuan, Liu Changle and Mao Yonghong.

9 are vice chairmen of the All-China Federation of Industry and Commerce: Robin Li Yanhong, Li Hejun, Xu Guanju, Su Zhigang, Zhou Haijiang, Pan Gang, Xu Jiankang, Sun Yinhuan and Mao Yonghong.

Social Media Impact

Alibaba Pictures investor and actress Zhao Wei is the ‘Hurun Rich List Social Media Queen’ with 80m fans. Wang Sicong, son of Wang Jianlin, passed Jack Ma to take third place with 23.4m fans.

Source: Weibo as of 28 September 2017

↑ Rank increase yoy Rank decrease yoy - No Rank change yoy

Largest Market Capitalizations

Alibaba and Tencent led the way for the companies with the largest market caps.

Source: Hurun Rich List 2017, in association with 36G

Shared Economy. A few entrepreneurs are taking on a leadership role in the shared economy. Cheng Wei of taxi app Didi, Dai Wei of bike app ofo, Li Bin of rival bike app Mobike, Mao Daqing of URwork are leading the way. “The next story is AI, driverless cars, biotech, but these industries have not found their way into the Hurun list yet,” says Hoogewerf.

Other Important IPOs include Beijing Genomics, jewelry brand Chow Tai Seng and Leysen Jewelry.

Dong Mingzhu of state-owned Gree. One of China’s highest-profile women entrepreneurs, Dong this year makes the list for the first time for her share of a Zhuhai new energy vehicle manufacturer, co-invested by Wang Jianlin.

Chen Feng of HNA makes the list for the first time, together with five other shareholders of HNA.

Most employees. Seven companies started by rich listers have more than 100,000 employees: Taikang with 27,000 direct employees and 650,000 insurance sales agents; BYD 190,000; Huawei 170,000; Wanda 156,000; Midea 130,000; SF 120,000; Evergrande 100,000.

Increased status of entrepreneurs. Guo Guangchang of Fosun became the first rich lister to be allowed to take a stake in a PPP railway construction project.

In trouble with the law. 5 of last year’s list are in trouble with the authorities. The highest profile are Xiao Jianhua of Tomorrow Holdings, who still makes the list, and Guo Wengui, who is now in the US and no longer makes the list. Huang Guangyu of Gome is in prison; Zhang Keqiang of Poly has not yet been sentenced; Bai Fengming of Xintong are under investigation; Zhu Yicai of Yurun is under house detention.  

Bankruptcy. Lin Binlan of Xinyijia owed US$100m and began liquidation.

Deaths. Three of last year’s list died. Qian Sanbao of Hengbao, Wang Dong of Dayu and Wang Deyan of Zhongguang.

Interesting domestic M&A deals

l  Wang Jianlin of Wanda sold theme parks to Sunac for US$6.5bn and 77 hotels to R&F Properties for US$3bn.

l  Shen Wenrong of Sha Steel announced plans to purchase 88% stake of Qingfeng in Suzhou and Daily-Tech Beijing by 22.9 billion RMB and 2.9 billion RMB. Qingfeng's core assets are 49% of Global Switch, a UK third-party database provider.

l  Zhang Xuhao of Ele.me bought out Baidu Deliveries in an US$800m acquisition.

l  Jack Ma of Alibaba spent US$800m to take control of logistics platform Cainiao, and bought a stake in Chen Fashu’s Xinhuadu stores.

l  Zhang Jin of Cedar acquired Sinoer, a men's apparel brand.

l  Zuo Hui of property agency Lianjia attracted CNY 3 billion of investment from Vanke and CNY 2.6 billion from Sunac.

l  Cheng Wei of Didi invested US$200m into RenRenChe, a second-hand car trading platform.

l  Chen Fashu became the largest shareholder of former state-controlled Yunnan Baiyao.

Cross-border M&A

Chen Feng of HNA led the way with cross-border deals this year

l  US: Chen Feng of HNA acquired a 25% stake in Hilton Worldwide from Blackstone LP for US$6.5 billion. HNA also bought US technology distributor Ingram Micro for US$6 billion.

Lu Zhiqiang of Oceanwide struck a deal to buy Genworth Financial for $2.7 billion and IDG Inc, a media and market research.

Pony Ma of Tencent led a 5% stake in Tesla for US$1.8bn

Jack Ma of Ant Financial, the digital payments arm of e-commerce giant Alibaba, is buying US-based payments firm MoneyGram for US$880m.

Qiu Jianping of GreatStar Industrial, a leading global developer, manufacturer and supplier of hand and power tools, announced that it has entered into an agreement to acquire Arrow Fastener from parent company Masco Corporation for US$1.25m.

l  Germany: Chen Feng of HNA has overtaken Blackrock to become Deutsche Bank's biggest shareholder after increasing its stake in the firm to nearly 10%. Guo Guangchang of Fosun has acquired a 34,000 square meter office complex in Frankfurt for just over US$50 million from New York’s Fortress Investment Group.

l  UK: Zhang Songqiao of Zhongyu Industry bought the Leadenhall Building, the tallest Building in the city of London for US$1.3 billion and office building One Kingdom Street for US$390 million. Chen Hongtian of Cheung Kei brought 20 Canada Square for US$540 million. Gao Jisheng of Lander bought 80% of Southampton FC for GBP 210 million. Pony Ma of Tencent bought a 9% stake in Cambridge-based gaming company Frontier Developments, in a deal worth £17.7 million.

l  Japan: Wang Jianfeng of Joyson paid US$1.6 billion to merge KSS from Japanese airbag maker Takata.

l  Southeast Asia: Jack Ma of Alibaba paid US$1 billion to boost Alibaba’s stake in Lazada, a Southeast Asian e-commerce platform to 83%. Chen Feng of HNA announced its plan to buy Singapore’s logistics provider CWT for US$1bn.

l  India: Guo Guangchang of Fosun bought 74% of India Gland Pharma for US$1.1 billion.

l  Italy: Ye Yuanxi of Grandland acquire 100% of the shares of Permasteelisa, Grandland will pay an acquisition price of US$549 million.

l  Russia: Guo Guangchang of Fosun paid US$160m for a building in Moscow.

l  Switzerland：Guo Guangchang of Fosun and Fujian Septwolves believed to be among the suitors vying for the €600 million luxury leather goods company Bally.

Missing from the list? Whilst Hurun Research has made every effort to dig up China’s most successful entrepreneurs, some are inevitably missed.  People we suspect ought to be on the list but whom we cannot prove it include Zhang Ruimin of Haier, Peter Ma Mingzhi of PingAn, Sun Yafang of Huawei. “For every one we have found, we estimate there to be two that we have missed,” suggests Hoogewerf.

Philanthropists

China’s Most Generous Philanthropist Xu Guanju & family donated US$430m to Transfar Charity Foundation last October. The foundation focuses on relieving poverty, health, education and technology, green and ecology, agriculture and rural development, staff development and protection. Tencent co-founder Chen Yidan donated US$320m rank 2nd, setting up the Yidan Award, one of the world's largest education awards in Hong Kong. Real estate tycoon Xu Jiayin of Evergrande donated US$180m ranked 3th, mainly to an area within Guizhou Province, and US$1.5m to Harvard University for research.

Hurun Philanthropy List 2017 Top 10

Source: Hurun Research

↑ Rank increase yoy  ↓ Rank decrease yoy  - No Rank change yoy  * New

Chinese Star Signs

Source: Hurun Rich List 2017, in association with 36G

Chinese Surnames

Source: Hurun Rich List 2017, in association with 36G

Global Distribution of China's Billionaires

A massive 36% of the world’s known billionaires are now from China.

Source: Hurun Global Rich List 2017 and Hurun Rich List 2017, in association with 36G

Historical Stats

Source: Hurun Rich List 2017, in association with 36G

Cut-off

“The top of the Hurun Rich List has grown faster than any year since 2007, with the possible exception of 2015,” says Hoogewerf.

Source: Hurun Rich List 2017, in association with 36G

Methodology

The Hurun Rich List is a snapshot of wealth as of August 15, the same date as that used for each of the last few years. The exchange rate used for the US dollar was CNY 6.7, for the Hong Kong dollar was CNY 0.85.

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.

Valuing the wealth of China’s richest is as much an art as it is a science. We have missed some people, many of whom go to extraordinary lengths to hide their wealth, 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 nineteenth year running - traveled the length and breadth of the country cross-checking information with entrepreneurs, local government, 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.

Hurun Rich List 2017, in association with 36G - Top 100

For the full list of 2130 people, see www.hurun.net

About 36G

36G is a leadership training platform, set up by Matishower in association with Hurun Report and well-known business host Wang Mudi.

36G started out by building a platform bringing together investors with exciting new companies.

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 research house, media and lifestyle investments business based in Shanghai, China, best-known for its rankings of the richest people in China, India and the rest of the world.

Hurun Report Inc. has four divisions: Hurun Research Institute; Hurun Media; Hurun Conferences and Training, an active events division targeting entrepreneurs and high net worth individuals; and Hurun Lifestyle and Investments, with investments in education, interior design, horses, bespoke tailoring, media and retail.

For media inquiries, please contact:

Hurun Report

Porsha Pan

Tel: +86-21-50105808*601

Mobile: +86-139 1838 7446

Email: porsha.pan@hurun.net

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