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


‘Known’ Wealth

‘Hidden’ WealthGlobally


China


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


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


NO 3Zhang Yin

55 years

NINE DRAGONS

Wealth: US$4.6 billion

NO 2Wu Yajun

48 years

LONGFOR


NO 1Chen Lihua

71 years

FU WAH


TOP THREE SELF-MADE WOMEN IN WORLD

11 of 20 Richest Self-Made Women in World are Chinese

WHERE THE GLOBAL BILLIONAIRES LIVE


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


2.7 times exercise a week

TOP TRAVEL DESTINATIONS


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


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


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%


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%


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


TOP PRIVATE BANKS or WHERE TO FIND THEM?

TOP EMIGRATION DESTINATIONS


1. US2. Canada3. Australia4. Singapore

60% emigrating !

Overseas Investment 1

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


- 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 ?


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?


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


- Good schools nearby - Investment value - Prestigious area, including coastal areas - Feng shui - EB5 visa opportunities

How do Chinese Investors Finance Purchases?


- 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


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


- 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

staying relevant to the chinese rich list

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