More Chinese billionaires are
liquidating their stock and assets than ever as volatility roils the stock
markets and fears over an inflationary bubble grow, according to the 2011 Hurun
China Cashout List released reported by local media.
Twenty-six Chinese tycoons have
cashed in assets over 800 million yuan ($125 million) from dividends or stocks,
a record high, according to the annual report from The Hurun Research Institute
cited in the Want China Times.
At the top of this year’s list is
WenPei, who runs investment firm SCAS Group. He has 4.5 billion yuan ($705
million) in liquid assets.
At second place is
Zu Linyao, chief
of Huabao International Holdings. Nicknamed the “Queen of cashout”, she has 3.5
billion yuan in assets from cashout. Since her company listed in Hong Kong in
2004, she has cashed out approximately 8.5 billion yuan altogether.
In third place on the list was
Xuefong, head of Jingchengtai Chemical, with 3 billion yuan.
Most of the entrepreneurs on the
list cashed their stocks prior to the 2008 financial crisis, as stock prices
have spiralled downwards since. On average, they began to cash stocks three
years after their companies listed in the stock market. Bawang Group
chairman Chen Qiyuan and chief executive Wan Yuhua did so after just 6 months.
Cashout yuan billionaires have usually invested their earnings in private
equities, said the report.
Of those on the list, 23 per cent
are female, much higher than the ratio seen on the Hurun Rich List, which
measures wealthy Chinese by total assets including property and retail. The
youngest cashout billionaire is 38-year-old Jiang Nanchun who started his own
business and cashed 1 billion yuan last year.
Hurun Report founder Ruper Hoogewerf
said entrepreneurs become yuan billionaires only after cashing their stocks.