staying relevant to the chinese rich list
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Staying Relevant to the Chinese Rich List. ELIZABETH HARRINGTON Hurun Report North America Publisher-At-Large 2013. THIS IS WHERE WE ARE TODAY. ‘Known’ Wealth. Size of Market. Globally 1453 US$ Billionaires China 251 US$ Billionaires. US$bn Globally 4500 pax 63yrs US$bn China - PowerPoint PPT PresentationTRANSCRIPT
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Staying Relevant to the Chinese Rich List
ELIZABETH HARRINGTONHurun Report North America Publisher-At-Large
2013
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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
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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
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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%
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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
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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
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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
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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
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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
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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
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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%
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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
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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
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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
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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?
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TOP EMIGRATION DESTINATIONS
Source: Hurun Research 2012
1. US2. Canada3. Australia4. Singapore
60% emigrating !
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Overseas Investment 1
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Overseas Investment 2
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Overseas Investment 3
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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
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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
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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
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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
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Factors In Selecting Properties
Source: E. Harrington Global 2013
- Good schools nearby - Investment value - Prestigious area, including coastal areas - Feng shui - EB5 visa opportunities
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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
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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
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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
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Hurun Report –Nobody Knows China's Rich Better
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Shanghai19 July 2013
HURUN REPORT WINE DINNER
With charity auction, to raise USD 200,000
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SUPER CAR CARNIVAL
Super Car CarnivalJuly 2013, Shanghai
500 Self-driven Super cars, No.1 in world
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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
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POLO
Polo Gold Cup26 Oct, Beijing
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HURUN REPORT WINNING TEAM
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Thank You
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Rare 150' Malibu Beach Lot
Christies International Real Estate Hyland & Hilton