US green cards losing their attraction - Wei Gu

Wei Gu

Wahaha tycoon Zong Qinghou was a high profile US passport holder who backed out of his US citizenship. WSJ wealth editor Wei Gu explains that the liability of a green cards is growing, as rich Chinese discover they have to pay taxes on all their income. What are the alternatives?

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

 Cyprus is one of the new stepping stones for rich Chinese, mentioned by Wei Gu. The China Weekly Hangout discussed in February 2012 with Business manager Pol Panayiotides of a Cypriotic law firm why his EU country has been discovered by the Chinese, even though it is not yet part of the Schengen Treaty.

Related articles

• Now also China's middle class invests abroad - Wei Gu (chinaspeakersbureau.info)
• Why Chinese investors invest abroad - Wei Gu (chinaspeakersbureau.info)
• A squeezed middle class needs more love - Wei Gu/Shaun Rein (chinaherald.net)
• The push and pull between banks and regulators on lending - Wei Gu (chinaspeakersbureau.info)
• Africa, the new target for affluent Chinese - Wei Gu (chinaspeakersbureau.info)

The challenge for chairman Zong and Wahaha - Paul French

Paul French

Chairman Zong Qinghou is not only the richest man in China, according to the latest Forbes China rich list, but has been a successful leader to his Wahaha, China beverage giant. Forbes asks retail analyst Paul French why.

Forbes

Q.  What are some of the challenges that Wahaha faces in the next three years, and how is Chairman Zong addressing them?  What are Wahaha’s prospects compared to Tingyi, Coke and Want Want? 

A. Competition, competition, competition. Five years ago Wahaha was clearly the leader of the pack but it has to be said that other local beverage companies like Want Want. Coke and Pepsi have the obvious advantages of extremely strong brands and iconic products.  Wahaha, nor any local or regional players, have not managed to build such strong brands. This is the challenge for the future – creating long lasting high value brands, like Coke or Pepsi.

More in Forbes.

Paul French is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

The China Weekly Hangout offers each Thursday a debate on China’s current affairs. Today the focus will be on innovation in China. October 18 we will discuss the question what China’s telecom giant Huawei could have done in defending itself against the attacks by US Congress. For upcoming debate, sign up at our China Weekly Hangout page.

Wahaha is one of very few larger private companies, together with Huawei. Learn from our latest China Weekly Hangout our panel of Greg Anderson and Janet Carmosky explain state-owned industries stifle innovation, and leave little room for private companies in China.  

Wealth evaporates for most of China's rich - Rupert Hoogewerf

Rupert Hoogewerf

Almost half of China's top-1000 wealthy saw their resources decline, according to the 14th annual Hurun Report, published today. The total number of billionaires dropped and 37 even lost more than half of their wealth, says Hurun founder Rupert Hoogewerf.  

Highlights from today's Hurun Report: 

1.    67-year old Zong Qinghou is richest man in China for second time in three years with personal fortune of US$12.6bn. 

2.    Of the Top 1000 of the Hurun Rich List, 469 saw their wealth shrink, of which 37 shrunk by over 50%, mainly those from solar, textiles and retail sectors.  291 saw their wealth grow, 114 stayed the same and there were 150 new faces. 

3.    Cut-off to make list down 9% to US$290 million, but still triple the cut-off of five years ago. 

4.    The number of dollar billionaires is down 20 to 251 individuals this year, but still considerably up from six years ago when there were only 15. 

5.    Yang Lan (198^th, US$1.1bn) and Pan Shiyi (32^nd, US$3bn) are China’s most popular microbloggers from the Hurun Rich List 2012 with over ten million followers each. 

6.    Property loses top spot as source of wealth for first time since records began in 1999, when half the Rich List had property as their main source of wealth. Manufacturing takes over with 20.7% of the individuals on the Rich List. Individuals counting investments as one of their main industries have seen the sharpest rise to 8.6% of the list. 

7.    Wu Yajun (8^th) is China’s richest woman and richest self-made woman in the world for the second year running with a personal fortune of US$6bn. 

8.    Vehicle maker and 18^th Party Congress delegate Wei Jianjun (39^th) was the fastest riser this past year, seeing his wealth shoot up from US$1bn to US$2.8bn on the back of a domestic listing of vehicle-maker Great Wall Motors. 

9.    The Rich List has engaged in record size deals this past year.  Jack Ma (55^th, US$2.4bn) led a US$7.1bn buy back of 20% of Alibaba’s shares from Yahoo; Wang Jianlin bought US cinema chain for US$2.6bn; last year’s Number OneLiang Wengen bought 90% of Putzmeister, a German machinery manufacturer for US$400 million; Mi Enhua of Hualing bought 90% of Basis Bank in Tbilisi, Georgia for US$100 million and is planning on investing a further US$450 million into the country; Yan Bin of Reignwood started development of a US$200 million luxury residential and private club in London. 

More in today's press release. 

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Related articles

• Who are China's superrich? - Rupert Hoogewerf (chinaspeakersbureau.info)
• Chinese investors expect high risks, high returns - Rupert Hoogewerf (chinaherald.net)
• Confidence of luxury consumers got a hit - Rupert Hoogewerf (chinaspeakersbureau.info)