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Staying Relevant to the Chinese Rich List
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Transcript of Staying Relevant to the Chinese Rich List
Staying Relevant to the Chinese Rich List
ELIZABETH HARRINGTONHurun Report North America Publisher-At-Large
2013
US$bn Globally4500 pax 63yrs US$bn China750 pax 53yrs
US$ Millionaire 2.8m pax 39yrs
Size of MarketGlobally
1453 US$ Billionaires
China
251 US$ Billionaires
‘Known’ Wealth
‘Hidden’ WealthGlobally
3000 US$ Billionaires
China
500 US$ Billionaires
THIS IS WHERE WE ARE TODAY
China World Number One for Self-Made Millionaires !Source: Hurun Research 2013
GENERAL DEMOGRAPHICS OF A RICH LISTER
53 years of age; wife, 50; child, 24
IPO 2007
Starting to cash out 2010
Born 1960Set up main business 1997
Go Global 2016
Hand over biz to next generation 2030
First Break 1993
Source: Hurun Research 2013
WHERE THE RICHEST 1000 LIVE
1 Beijing2 Shanghai3 Shenzhen4 Hangzhou 5 Guangzhou6 Suzhou7 HK7 Chengdu9 Nanjing10 Ningbo
123 indiv.807452392922222119
Source: Hurun Research 2012
East China 43%North China24%South China17%Others 16%1st tier41%2nd tier 33%3rd / 4th tier 26%
TOP THREE CHINESE
Zong Qinghou67 years
WAHAHAChildren’s drinks
US$12.6 billion
Robin Li Yanhong44 years
BAIDUInternet search
US$8 billion
Wang Jianlin58 years
WANDAProperty
US$10.3 billion
Source: Hurun Research 2012
NO 3Zhang Yin
55 years
NINE DRAGONS
Wealth: US$4.6 billion
NO 2Wu Yajun
48 years
LONGFOR
Wealth: US$4.8 billion
NO 1Chen Lihua
71 years
FU WAH
Wealth: US$6.1 billion
TOP THREE SELF-MADE WOMEN IN WORLD
11 of 20 Richest Self-Made Women in World are Chinese
WHERE THE GLOBAL BILLIONAIRES LIVE
Source: Hurun Research 2013
Country No. OfBillionaires
1 USA 4092 China 3173 Russia 884 Germany 615 UK 566 India 537 Switzerland 418 Brazil 33
City No. OfBillionaires
1 Moscow 762 New York 703 Hong Kong 544 Beijing 415 London 406 Istanbul 267= Mumbai 247= Shanghai 249 Paris 2310= Shenzhen 2210= Taipei 22
Chinese language critical influencer
China is second after US for billionaires
5 of Top 10 cities in world today for billionaires are in Greater
China
TOP SPORTS
What is your favourite sport?
FOR MEN1. Swimming2. Golf3. Mountain Walking
FOR WOMEN1. Yoga2. Swimming4. Golf
Source: Hurun Research 2013
2.7 times exercise a week
TOP TRAVEL DESTINATIONS
Source: Hurun Research 2013
9 Days on the Road a Month
2 to 3 trips overseas a year
1 France2 U.S.A.3 ↑ Singapore4 ↑ Switzerland 5 ↑ UK6 ↑ Italy7 ↓ Australia8 ↓ Dubai9 ↑ Germany10 ↓ Maldives
BEST BRAND FOR GIFTING BY MEN 2013
Source: Hurun Research 2013
1 Louis Vuitton 13.9% France
2 Apple 8.9 US
3 Hermès 7.2 France
4 Chanel 6.7 France
5 Cartier 5.6 France
6 Gucci 5.0 Italy
7 Montblanc 4.9 Germany
8 Dior 3.9 France
9 Burberry 3.3 UK
10 Château Lafite 3.0 France
CHOICE OF GIFTS
For the Chinese super-rich, red wine is now the gift of choice
Source: Hurun Research 2013
1 Red Wine 33%
2 Watches 26%
3 Electronics 24%
4 Smokes 25%
5 Imported Spirits 21%
6 Art 19%
7 Gift Coupons 14%
8 Fashion 12%
CHINESE ARE NOW THE BIGGEST LUXURY CONSUMER IN WORLD
1. Chinese 24%2. Russians 16%3. Japanese 4%
Source: Global Blue Research 2013
Chinese spending grew 57%, 59%, 81% over last three yearsAverage tax free shop Euro 875 in 2012
Source: Global Blue Research 2013
TOP EDUCATION DESTINATIONS
80% want to send their child to study overseas
THE BIG TWO1. US 43%2. UK 34%
NEXT COMES3. Canada 17%
THE FASTEST GROWER4. Switzerland 8%
AND THE REST5. Australia 7%6. Germany 6%7. France 5%8. Singapore 4%
Source: Hurun Research 2013
Drives luxury travel, overseas property
purchases and emigration
4 out of 5 millionaires consider educating their kids overseas
COLLECTING
What do you like collecting?
1. Watches 20%2. Classical Art 19%3. Drinks 17%4. Jade 12%5. Porcelain 10%6. Contemporary Art 8%7. Trophy Properties 6%8. Cars 4%
Source: Hurun Research 2013
70% are collectors
Collectors only for 6 years
What is your preferred private bank?DOMESTIC
1. China Merchants Bank2. ICBC3. Bank of China
INTERNATIONAL
4. UBS
Source: Hurun Research 2013
TOP PRIVATE BANKS or WHERE TO FIND THEM?
TOP EMIGRATION DESTINATIONS
Source: Hurun Research 2012
1. US2. Canada3. Australia4. Singapore
60% emigrating !
Overseas Investment 1
Overseas Investment 2
Overseas Investment 3
Residential Real Estate Buying Behavior in the US
Source: E. Harrington Global 2013
Market Size - Chinese are the second largest international buying group in the US - 11% of international buyers
- $8 Billion in sales in 2012 - New York is the number 1 destination
Reasons for Buying Residential Real Estate in the US
Source: E. Harrington Global 2013
- Children studying in US high schools or colleges
- Investment - Diversify assets - Government limits on real estate purchases in China - Volatile Chinese stock market - Get funds out of China - Low real estate prices in the US - Weak US Dollar and low interest rates
What Do Chinese Buy in the US ?
Source: E. Harrington Global 2013
Segments - Students: Apartments or single family homes near good schools- Business Executives working in the US : Investment properties near work and good schools
- High Net Worth Individuals : Second homes in prestigious areas - Luxury apartments: Central Park, Trump Tower , Time Warner Center - Single family homes : Sands Point, Long Island - Great Gatsby country
Chinese Buyers Live In Chinese Neighborhoods or Any Neighborhood?
Source: E. Harrington Global 2013
Segments - Investors "cluster" in areas recommended by peers - English speakers buy in prestigious mainstream neighborhoods with good schools to get a true American experience - Non-English speakers buy in Chinese neighborhoods for support from family and with language
Factors In Selecting Properties
Source: E. Harrington Global 2013
- Good schools nearby - Investment value - Prestigious area, including coastal areas - Feng shui - EB5 visa opportunities
How do Chinese Investors Finance Purchases?
Source: E. Harrington Global 2013
- 70% pay cash
- Use of mortgages with 40% down is increasing - Low US interest rates - Leverage allows additional investments - Interest rates and return on investments is higher in China
Sources of Information About Real Estate
Source: E. Harrington Global 2013
Recommendation of trusted advisor - Business or social peer - Family - Business service providers: bankers, lawyers, consultants
Sources of trusted relationships in New York - C100 - Asia Society - China Center - Invest Hong Kong - Christies Asia Art Week - Hurun Report -- China Rich List and Entrepreneurs Awards
Chinese Buyers Want From a Real Estate Agent
Source: E. Harrington Global 2013
- Trust - Discretion - Expert advice on all issues - schools, financing, legal matters, lifestyle - Outstanding, efficient service
- Strong negotiating skills - Concierge services : Rental for investment properties Maintenance for second homes Benefits -- Referrals to peers and family One successful deal = Ten new deals
Christies: Experience the Art of Living
Hurun Report –Nobody Knows China's Rich Better
Shanghai19 July 2013
HURUN REPORT WINE DINNER
With charity auction, to raise USD 200,000
SUPER CAR CARNIVAL
Super Car CarnivalJuly 2013, Shanghai
500 Self-driven Super cars, No.1 in world
MOST RESPECTED ENTREPRENEUR OF THE YEAR
Rich List Dinner25 October 2013, Beijing
Presenting Man of the Year to Zong Qinghou
Presenting Man of the Year to Yu Minhong
POLO
Polo Gold Cup26 Oct, Beijing
HURUN REPORT WINNING TEAM
Thank You
Rare 150' Malibu Beach Lot
Christies International Real Estate Hyland & Hilton