Inconspicuous is all the rage for China's new super wealthy

[Pale Blue Dot]

http://www.philly.com/mld/inquirer/news/nation/7712914.htm

Identifying the super wealthy is not easy.

"Most of them grew their business without any kind of bank financing," said Yuwa Hedrick-Wong, a Singapore-based adviser to MasterCard International in the Asia/Pacific region. "If you look at the formal statistics, you will find almost no trace of their activities."

Many of the mega-wealthy have made their fortunes in a few short years and are too busy managing empires to engage in the kind of flamboyant spending the rich are known for elsewhere.

"They've all started from zero," Hoogewerf said. "They are all self-made. That's the key differential between China and overseas."

Interesting article, and a telling contrast between US and Chinese millionaires.

[J B]

1. Well, you have to understand China's banking system....

Then these self-made super-rich make a lot more sense, intellectually.

[David__77]

2. It's a "socialist country"...

They had better be inconspicuous. The party allows capitalism, just not the appearance of too much polarization.

[54anickel]

3. Sad isn't it. It appears we will end up meeting them half-way on our

journey to 3rd world status as they rise up. The corporate culture we've exported there seems to be taking hold.

snip>

Average Chinese, who earn less than $1,000 a year nationwide, and about $2,640 on average in Beijing, have conflicting views of the extremely wealthy.

"Some feel admiration," said Zhang Wanli, a sociologist with the Chinese Academy of Social Sciences. "They think they are very smart, very capable to get rich quick. They regard these people as models. On the other hand, they have a kind of hatred of these people because they may have become rich through illegal means."

Wealth in China does not yet bring the kind of open political power that the rich enjoy in Western countries, where campaign donations can buy the attention of politicians and sway the course of events. But scholars say this is slowly changing.

"Their influence will become bigger and bigger in society," said Jin Canrong, an associate dean of the School of International Studies at the People's University of China. "For one thing, they may join the mainstream and affect the policymaking process."

[loudnclear]

4. They "will bury us." Kruchev had it almost right.

This is the new stealth wealth that will take over behind the scenes during the next decade.

[pw]

5. The article sounds like it leaves out the "old money" in China

namely the politically connected family members of high-ranking officers and political officials who have been getting a piece of the action since limited capitalism started.

[On the Road]

6. Yeah -- I'm Getting Some Private Chinese Financing Sunday

Seriously.

"Most of them grew their business without any kind of bank financing"

That's because they lend to each other.

I have two small investment homes and I've gotten tired of being jerked around by banks and mortgage companies trying to borrow against them.

I'm going to see a Chinese friend of a friend Sunday who's going to privately loan me $65,000 at 8% interest.

Do not underestimate the ability of the Chinese.