市场消息

China’s wealth is becoming increasingly concentrated in the hands of tech entrepreneurs, although some pharmaceutical moguls and pig farmers are breaking into the ranks of the super rich.

There were fewer millionaires and billionaires on the Hurun Report’s rich list for a second year in a row, but their average wealth increased as China’s shift towards the digital economy saw manufacturing and construction tycoons drop off the bottom.

There has been a “changing of the guard” among China’s wealthiest people over the years, said Rupert Hoogewerf, Hurun Report’s chairman, commenting on the list that was published Thursday.

“Tech entrepreneurs are replacing those from the traditional powerhouses of manufacturing and real estate,” Hoogewerf said. “Wealth is concentrating into the hands of those who are able to adapt to the digital economy,” he added.

Alibaba (BABA) founder Jack Ma held onto his title of China’s richest man with a net worth of $39 billion, with Pony Ma of Tencent (TCEHY) rising one spot to take second place with $37 billion.

Among the biggest movers for 2019 were Sun Piaoyang and Zhong Huijuan, who surged 15 spots to land in fifth place. The couple doubled their wealth to $25 billion after their company Hansoh, which makes drugs for schizophrenia and bipolar disorder, went public in Hong Kong. Pharmaceutical moguls make up 8% of China’s rich list, double that of 10 years ago.

The growing number of Chinese entrepreneurs whose main source of wealth is tech or pharmaceuticals reflects the country’s changing economy. China has for years been trying to shed its status as the world’s factory, vying instead to become a place where high-tech talent and innovation can thrive.

The latest ultra rich list indicates that shift is starting to bear fruit.

Colin Huang Zheng, founder of e-commerce company Pinduoduo (PDD), became the first self-made entrepreneur born in the 1980s to enter the top 10. The 39-year-old’s wealth grew to $19 billion, earning him seventh spot on this year’s list.

From the same generation is Bytedance founder Zhang Yiming, 36. Bytedance is the company behind popular video and news aggregator apps like TikTok and Toutiao. Zhang just made it into the top 20 with a net worth of $13.5 billion.

And Ren Zhengfei, the founder of tech giant Huawei, managed to rise a few dozen spots on the list despite the fact that his company is under enormous pressure from a US campaign against it. Ren is worth $3 billion and is in the top 200.

Soaring pork prices

Some of China’s biggest food producers also had a great year, helped by soaring pork prices.

Qin Yinglin and Qian Ying of Muyuan, who own China’s second largest pork producer, tripled their wealth to $14 billion, cashing in on high pork prices due to an outbreak of swine flu. And Zhang Yong and Shu Ping, the couple behind popular hot pot chain Haidilao, doubled their wealth to $17 billion.

Traditional manufacturing and property development are still important sources of wealth in China, but there are fewer super rich people making their money in those sectors, and those who do are suffering declines in their net worth.

Property developer Xu Jiayin is the third richest man in China, but the Evergrande Group founder’s wealth has plummeted $13 billion from two years ago when he topped the list. He is now worth $30 billion.

Tech doesn’t always pay

Big bets in tech are risky, especially when they’re in super competitive industries like electric vehicles and smartphones.

Li Bin, founder of electric carmaker NIO, knows this all too well. His net worth more than halved, to $860 million. Shares in NIO (NIO) have plummeted, down more than 74% for the year, as the company grapples with cost overruns and weak demand for its pricy vehicles.

Xiaomi founder Lei Jun saw his wealth drop by about a third, as his company suffers a slump in global smartphone sales. Lei is still worth $10.8 billion and is in the top 30. […]

• The Chinese delegation refuses to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says
• Vice-Premier Liu He and his team may leave earlier than expected

[…]

China is planning tighter visa restrictions for U.S. nationals with ties to anti-China groups, people with knowledge of the proposed curbs said, following similar U.S. restrictions on Chinese nationals, as relations between the countries sour.

China’s Ministry of Public Security has for months been working on rules to limit the ability of anyone employed, or sponsored, by U.S. intelligence services and human rights groups to travel to China.

The proposed changes follow the introduction by the United States of tighter rules for visas for Chinese scholars in May.

New U.S. visa restrictions announced on Tuesday, on Chinese government and Communist Party officials the United States believes responsible for the detention or abuse of Muslim minorities, had bolstered the case for the new Chinese restrictions, one of the sources said.

“This is not something we want to do but we don’t seem to have any choice,” the source said.

The Chinese rules would mandate the drafting of a list of U.S. military and CIA-linked institutions and rights groups, and the addition of their employees to a visa blacklist, according to the sources, who declined to be identified.

The tighter restrictions come amid heightened concern in Beijing that the United States and other governments are using such organisations to incite anti-government protests in both mainland China and Hong Kong, and would also be in retaliation for the U.S. visa restrictions against Chinese researchers and officials, the first source said.

“The plan has been widely discussed by senior police officers over recent months, but made more likely to be implemented after the Hong Kong protests and the U.S. visa ban on Chinese officials,” the source said.

China’s National Immigration Administration, which operates under the Ministry of Public Security, did not immediately respond to a faxed request for comment.

Rivalry between the United States and China is fuelled by a range of issues including commercial competition, human rights and worries about security.

The United States took a major step in confronting China in May when it added Chinese tech giant Huawei Technologies Co and 70 affiliates to its so-called Entity List, banning the Chinese company from acquiring components and technology from U.S. firms without U.S. government approval.

The United States suspects Huawei’s equipment could be used by Beijing for spying, which the Chinese firm has repeatedly denied.

TRADE TALKS

The U.S. Commerce Department on Monday cited the mistreatment of Uighur Muslims and others in a decision to add 20 Chinese public security bureaus and eight companies to a trade blacklist, including the world’s largest maker of video surveillance gear, Hikvision, and the world’s most valuable artificial intelligence startup, SenseTime.

The U.S. moves have cast a pall over U.S.-China trade talks in Washington on Thursday and Friday between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

The United States is also moving ahead with discussions on possible restrictions on capital flows to China, with a focus on investments by U.S. government pension funds, Bloomberg reported.

The latest tit-for-tat visa restrictions began in April when some prominent Chinese scholars had their U.S. visas revoked.

The following month, the United States introduced legislation intended to prohibit anyone employed or sponsored by the Chinese military from getting student or research visas.

China has denounced what it sees as punitive U.S. action against its nationals.

U.S. citizens hoping to visit China’s mainland must apply for an entry visa. U.S. passport holders do not need a visa to enter Hong Kong. […]

POWELL SAYS FED CONTEMPLATING PURCHASES OF T-BILLS, WON’T BE QE

Fed will permanently expand its balance sheet and buy Treasurys, i.e. QE, but whatever you do, don’t call it QE

Zerohedge ‏on Twitter […]

1. PM spoke to Merkel at 8am this morning – No 10 source says she said there could only be a deal if Northern Ireland stays in Customs Union, if not, then deal is ‘overwhelmingly unlikely’

2. No 10 says PM stressed to Merkel UK believes they had put forward a reasonable new deal, but with no desire to engage on EU side + this demand on NI staying in Customs Union a deal is ‘essentially impossible’

Laura Kuenssberg ‏on Twitter […]

CHINESE VICE PREMIER LIU HE, TOP TRADE NEGOTIATOR, WILL BE TRAVELING TO WASHINGTON FOR TRADE TALKS ON OCT.10-11 – COMMERCE MINISTRY

First Squawk ‏on Twitter

We just WON the big court case on Net Neutrality Rules! A great win for the future and speed of the internet. Will lead to many big things including 5G. Congratulations to the FCC and its Chairman, Ajit Pai!

Donald J. Trump on twitter.com […]

China’s foreign exchange reserves fell more than expected in September despite the yuan rebounding from its biggest monthly drop in 25 years in August amid a cooling domestic economy and rising Sino-U.S. trade tensions.

The country’s foreign exchange reserves – the world’s largest – fell $14.8 billion in September to $3.092 trillion, according to data from the country’s foreign exchange regulator Sunday.

Economists polled by Reuters had expected reserves would fall by $6 billion from August to $3.101 trillion.

The fall in September was due to fluctuations in foreign exchange rates and in the price of assets, the foreign exchange regulator said in a statement after the data release.

Looking ahead, uncertainties in the international economic and financial environment will increase, with the global economy slowing, and trade protectionism and unilateralism on the rise, according to the same statement. Volatility in international financial markets will increase.

China has been able to keep capital outflows under control over the past year despite an escalating trade war with the United States and weakening economic growth at home.

Reserves have rebounded from an October 2018 low thanks to capital controls and rising foreign investments in Chinese stocks and bonds.

In September, the yuan CNY=CFXS rose 0.14% against the dollar after posting its biggest monthly drop in 25 years in August.

The yuan has now depreciated about 11% against the dollar since the two sides began exchanging tit-for-tat tariffs in April last year. […]

The EU will decide at the end of the week whether a Brexit deal is going to be possible, French President Emmanuel Macron has told Boris Johnson.

President Macron said talks should now proceed swiftly to see if an agreement could “respect” EU principles.

Mr Johnson said the EU should not be “lured” into thinking there would be a delay to Brexit beyond 31 October.

The PM will hold further calls with EU leaders on Monday to discuss his latest proposals for the Irish border.

Downing Street said Mr Johnson was expected to hold phone calls with the leaders of Sweden, Denmark and Poland, after speaking to Mr Macron on Sunday.

The prime minister told the French president over the phone he believed a deal could be achieved, but that the EU must match compromises made by the UK.

A French government official said President Macron told Mr Johnson “that the negotiations should continue swiftly with Michel Barnier’s team in coming days, in order to evaluate at the end of the week whether a deal is possible that respects European Union principles”. […]