The rise of TikTok on the global stage has catapulted Zhang Yiming, co-founder of its parent company, ByteDance, to become China’s wealthiest individual. As per the latest report from the Hurun Research Institute, Zhang’s net worth has soared to $49.3 billion (£38 billion), marking a staggering 43% increase from 2023.
From Leadership to Ownership
Although Zhang stepped down as head of ByteDance in 2021, he still holds approximately 20% of the company. TikTok has emerged as a leading social media platform worldwide, despite ongoing scrutiny regarding its connections to the Chinese government.
U.S. Ban Looms
In response to national security concerns, the U.S. government plans to ban TikTok by January 2025 unless ByteDance divests the app. Nonetheless, ByteDance’s global profits surged by 60% last year, significantly boosting Zhang’s wealth.
Dynamic Shifts in Wealth
Rupert Hoogewerf, head of Hurun, remarked, “Zhang Yiming is the 18th new Number One we have had in China in just 26 years. The US, by comparison, has only four Number Ones: Bill Gates, Warren Buffett, Jeff Bezos, and Elon Musk. This gives an indication of some of the dynamism in the Chinese economy.”
Zhang isn’t the only tech mogul on the list. Pony Ma, CEO of Tencent, ranks third with a personal fortune of £44.4 billion. However, the fortunes of these tech leaders highlight a stark contrast with their competitors, who have fared poorly amid a challenging year for China’s economy.
Mr. Hoogewerf pointed out that “the Hurun China Rich List has shrunk for an unprecedented third year running, as China’s economy and stock markets had a difficult year.” The number of individuals on the list decreased by 12% over the past year, dropping to just under 1,100 and reflecting a 25% decline from its peak in 2021.
Market Insights
While some sectors have thrived, others have struggled. “The data showed it had been a good year for smartphone manufacturers such as Xiaomi, while the green energy market had stumbled,” Hoogewerf noted.
He elaborated on the challenges faced by the solar panel, lithium battery, and electric vehicle (EV) makers: “Solar panel makers saw their wealth down as much as 80% from the 2021 peak, whilst battery and EV makers were down by half and a quarter respectively.” This underscores the intense competition and market fluctuations that have characterized the year.
(Includes inputs from online sources)
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