China’s Billionaire Count Drops Sharply: Insights from Hurun Report

Overview

The number of China’s dollar billionaires has fallen substantially, according to a recent report by Hurun. This significant decline underscores the impact of broader economic challenges and government crackdowns.

Decline in Dollar Billionaires

Hurun’s "rich list" reveals that the number of dollar billionaires in China has dropped from 1,185 in 2021 to 753. This 36% decline outpaced a 10% fall in the renminbi’s value against the dollar over the same period.

Rapid Churn in Rich List

Rapid churn has been characteristic of the rich list. Older entrepreneurs, such as property developers, have seen their fortunes dwindle as newer figures, often associated with technology, have risen to prominence.

New Faces of the Rich List

The report highlights several new faces on the list:

• Zhang Yiming, founder of ByteDance, which owns TikTok and China’s Douyin, is now the nation’s richest person, with a fortune of $49bn.
• Pony Ma of Tencent, a superapp powerhouse, and Colin Huang of Pinduoduo and Temu, ranked third and fourth respectively.

Impact of Government Crackdowns

Government crackdowns on companies and the developing economy have significantly impacted the super-rich. For example:

• Sleeping-xi, Zhong Shanshan, known as the "bottled water king," was ousted from the top spot after his company faced severe backlash on social media.
• Jack Ma, previously atop the list, disappeared after cancelling Alipay’s initial public offering.

International Expansion and Influence

15% of the rich list resides outside mainland China, with prominent figures in Hong Kong, Macau, Taiwan, the US, and Singapore. This diaspora reflects increased interest in offshore havens.

Influence and Impact on Industry

Many rich list members retain significant political influence, with around 7% participating in major political advisory bodies. The rich list also showcases increased prominence from sectors like smartphones and new-energy ventures.

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