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Colin Huang Becomes China’s Second Richest Thanks to ‘Temu Effect’

Daniel Kim Views  

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Colin Huang, the founder of the Chinese e-commerce company Pinduoduo, has surpassed Tencent chairman Ma Huateng to become the second wealthiest person in China. This is mainly due to the rapid rise of Pinduoduo’s ultra-low-cost online shopping mall, Temu, in global markets, including the United States, which has driven up Pinduoduo’s stock price. 

According to the “Global Wealth Ranking, ” released by the Chinese wealth research institute Hurun on the 25th, there were 814 wealthy individuals in China. Colin Huang’s wealth increased by a staggering 71% (160 billion yuan, about $22 billion) in just one year, raising his total personal wealth to approximately 385 billion yuan (about $53 billion), placing him second in the Chinese wealth rankings. 

Huang was nominated as the wealthiest individual in China, whose wealth has grown the most for two consecutive years. As recently as 2022, Huang was only ranked 10th among the richest in China, but his wealth increased by 80 billion yuan ($11 billion) last year, propelling him to third place.

The “Temu Effect” played a significant role. Temu, which has adopted a strategy of ultra-low prices and AI-based e-commerce, has created a sensation in the global online shopping market. This has caused Pinduoduo’s stock price on the U.S. NASDAQ to jump nearly 70% in the past year, and its current market capitalization exceeds $163 billion.

But it’s not just Pinduoduo. This year, the development of AI has significantly impacted the increase in wealth among the rich. The CEO of Chinese gaming company miHoYo, Cai Haoyu (37), and the founder of Chinese AI semiconductor company Cambricon, Chen Tianshi (39), have seen their assets increase by 210% and 120%, respectively, due to the development of AI, making them among the wealthiest individuals in China with the largest increase in wealth.

The China Economic Observer explained that “half of the wealth increase among global rich people this year came from AI.” Hurun Research Institute also evaluated the fact that “AI has influenced the global wealth rankings for the first time.” 

On the other hand, the wealth of the rich in traditional strongholds, such as China’s new energy vehicles and real estate, has decreased. The assets of Zeng Yuqun, chairman of China’s battery king CATL, decreased by 90 billion yuan (about $12 billion). The wealth of Wang Jianlin, chairman of the crisis-ridden Chinese real estate tycoon Wanda Group, and Yang Huiyan, chairman of Country Garden, also decreased by 72% and 60%, respectively. 

Meanwhile, Zhong Shanshan (70), chairman of Chinese bottled water company Nongfu Spring, firmly held the top spot in the Chinese wealth rankings for the fourth consecutive year, although his wealth decreased by 9% over the past year. Recently, he suffered a nearly 10% stock price crash in a month due to extreme patriotic attacks over allegations of pro-Japanese sentiment. Ma Huateng, founder of Tencent, who was second last year, saw his assets decrease by 10% to 250 billion yuan ($34 billion), pushing him down to third place. 

According to the Hurun Research Institute, as of January 15, the number of billionaires worldwide with wealth exceeding $1 billion increased by 5% from the previous year to 3,279. Of these, the Chinese-speaking region had the most billionaires, 814. However, due to the economic downturn in China, the number of billionaires decreased by 155 from the previous year, and the total asset amount also reduced by about 15% to 19 trillion yuan ($2.6 trillion).

The United States ranked second, with an increase of 109 billionaires from the previous year, totaling 800. India ranked third, with an increase of 84 billionaires, totaling 271.

Daniel Kim
content@viewusglobal.com

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