Staying Relevant to the Chinese Rich List ELIZABETH HARRINGTON Hurun Report North America Publisher-At-Large 2013

US$bn Globally 4500 pax 63yrs US$bn China 750 pax 53yrs US$ Millionaire 2.8m pax 39yrs Size of Market Globally 1453 US$ Billionaires China 251 US$ Billionaires ‘Known’ Wealth ‘Hidden’ Wealth Globally 3000 US$ Billionaires China 500 US$ Billionaires THIS IS WHERE WE ARE TODAY China World Number One for Self-Made Millionaires ! Source: Hurun Research 2013

GENERAL DEMOGRAPHICS OF A RICH LISTER 53 years of age; wife, 50; child, 24 IPO 2007 Starting to cash out 2010 Born 1960 Set up main business 1997 Go Global 2016 Hand over biz to next generation 2030 First Break 1993 Source: Hurun Research 2013

WHERE THE RICHEST 1000 LIVE 1 Beijing 2 Shanghai 3Shenzhen 4Hangzhou 5Guangzhou 6Suzhou 7HK 7 Chengdu 9Nanjing 10Ningbo 123 indiv Source: Hurun Research 2012 East China43% North China24% South China17% Others16% 1 st tier41% 2 nd tier33% 3 rd / 4 th tier26%

TOP THREE CHINESE Zong Qinghou 67 years WAHAHA Children’s drinks US$12.6 billion Robin Li Yanhong 44 years BAIDU Internet search US$8 billion Wang Jianlin 58 years WANDA Property US$10.3 billion Source: Hurun Research 2012

NO 3 Zhang Yin 55 years NINE DRAGONS Wealth: US$4.6 billion NO 2 Wu Yajun 48 years LONGFOR Wealth: US$4.8 billion NO 1 Chen Lihua 71 years FU WAH Wealth: US$6.1 billion TOP THREE SELF-MADE WOMEN IN WORLD 11 of 20 Richest Self-Made Women in World are Chinese

WHERE THE GLOBAL BILLIONAIRES LIVE Source: Hurun Research 2013 Country No. Of Billionaires 1USA409 2China317 3Russia88 4Germany61 5UK56 6India53 7Switzerland41 8Brazil33 City No. Of Billionaires 1Moscow76 2New York70 3Hong Kong54 4Beijing41 5London40 6Istanbul26 7=Mumbai24 7=Shanghai24 9Paris23 10=Shenzhen22 10=Taipei22 Chinese language critical influencer China is second after US for billionaires 5 of Top 10 cities in world today for billionaires are in Greater China

TOP SPORTS What is your favourite sport? FOR MEN 1.Swimming 2.Golf 3.Mountain Walking FOR WOMEN 1. Yoga 2. Swimming 3.Golf Source: Hurun Research times exercise a week

TOP TRAVEL DESTINATIONS Source: Hurun Research Days on the Road a Month 2 to 3 trips overseas a year 1France 2U.S.A. 3 ↑Singapore 4 ↑Switzerland 5 ↑UK 6 ↑Italy 7 ↓Australia 8 ↓Dubai 9 ↑Germany 10 ↓Maldives

BEST BRAND FOR GIFTING BY MEN 2013 Source: Hurun Research Louis Vuitton13.9% France 2 Apple8.9 US 3 Hermès7.2 France 4 Chanel6.7 France 5 Cartier5.6 France 6 Gucci5.0 Italy 7 Montblanc4.9 Germany 8 Dior3.9 France 9 Burberry3.3 UK 10 Château Lafite3.0 France

CHOICE OF GIFTS For the Chinese super-rich, red wine is now the gift of choice Source: Hurun Research Red Wine33% 2Watches26% 3Electronics24% 4Smokes25% 5 Imported Spirits21% 6Art19% 7 Gift Coupons14% 8Fashion12%

CHINESE ARE NOW THE BIGGEST LUXURY CONSUMER IN WORLD 1.Chinese 24% 2.Russians16% 3.Japanese 4% Source: Global Blue Research 2013 Chinese spending grew 57%, 59%, 81% over last three years Average tax free shop Euro 875 in 2012 Source: Global Blue Research 2013

TOP EDUCATION DESTINATIONS 80% want to send their child to study overseas THE BIG TWO 1.US43% 2.UK34% NEXT COMES 3.Canada17% THE FASTEST GROWER 4.Switzerland 8% AND THE REST 5.Australia 7% 6.Germany 6% 7.France 5% 8.Singapore 4% Source: Hurun Research 2013 Drives luxury travel, overseas property purchases and emigration 4 out of 5 millionaires consider educating their kids overseas

COLLECTING What do you like collecting? 1.Watches20% 2.Classical Art 19% 3.Drinks17% 4.Jade 12% 5.Porcelain10% 6.Contemporary Art 8% 7.Trophy Properties 6% 8.Cars 4% Source: Hurun Research % are collectors Collectors only for 6 years

What is your preferred private bank? DOMESTIC 1. China Merchants Bank 2. ICBC 3. Bank of China INTERNATIONAL 1. UBS Source: Hurun Research 2013 H TOP PRIVATE BANKS or WHERE TO FIND THEM?

TOP EMIGRATION DESTINATIONS Source: Hurun Research US 2.Canada 3.Australia 4.Singapore 60% emigrating !

Overseas Investment 1

Overseas Investment 2

Overseas Investment 3

Residential Real Estate Buying Behavior in the US Source: E. Harrington Global 2013 Market Size - Chinese are the second largest international buying group in the US - 11% of international buyers - $8 Billion in sales in New York is the number 1 destination

Reasons for Buying Residential Real Estate in the US Source: E. Harrington Global Children studying in US high schools or colleges -Investment - Diversify assets - Government limits on real estate purchases in China - Volatile Chinese stock market - Get funds out of China - Low real estate prices in the US - Weak US Dollar and low interest rates

What Do Chinese Buy in the US ? Source: E. Harrington Global 2013 Segments - Students: Apartments or single family homes near good schools - Business Executives working in the US : Investment properties near work and good schools - High Net Worth Individuals : Second homes in prestigious areas - Luxury apartments: Central Park, Trump Tower, Time Warner Center - Single family homes : Sands Point, Long Island - Great Gatsby country

Chinese Buyers Live In Chinese Neighborhoods or Any Neighborhood? Source: E. Harrington Global 2013 Segments - Investors "cluster" in areas recommended by peers - English speakers buy in prestigious mainstream neighborhoods with good schools to get a true American experience - Non-English speakers buy in Chinese neighborhoods for support from family and with language

Factors In Selecting Properties Source: E. Harrington Global Good schools nearby - Investment value - Prestigious area, including coastal areas - Feng shui - EB5 visa opportunities

How do Chinese Investors Finance Purchases? Source: E. Harrington Global % pay cash - Use of mortgages with 40% down is increasing - Low US interest rates - Leverage allows additional investments - Interest rates and return on investments is higher in China

Sources of Information About Real Estate Source: E. Harrington Global 2013 Recommendation of trusted advisor - Business or social peer - Family - Business service providers: bankers, lawyers, consultants Sources of trusted relationships in New York - C100 - Asia Society - China Center - Invest Hong Kong - Christies Asia Art Week - Hurun Report -- China Rich List and Entrepreneurs Awards

Chinese Buyers Want From a Real Estate Agent Source: E. Harrington Global Trust - Discretion - Expert advice on all issues - schools, financing, legal matters, lifestyle - Outstanding, efficient service - Strong negotiating skills - Concierge services : Rental for investment properties Maintenance for second homes Benefits -- Referrals to peers and family One successful deal = Ten new deals Christies: Experience the Art of Living

Hurun Report – Nobody Knows China's Rich Better

Shanghai 19 July 2013 HURUN REPORT WINE DINNER With charity auction, to raise USD 200,000

SUPER CAR CARNIVAL Super Car Carnival July 2013, Shanghai 500 Self-driven Super cars, No.1 in world

MOST RESPECTED ENTREPRENEUR OF THE YEAR Rich List Dinner 25 October 2013, Beijing Presenting Man of the Year to Zong Qinghou Presenting Man of the Year to Yu Minhong

POLO Polo Gold Cup 26 Oct, Beijing

HURUN REPORT WINNING TEAM

Thank You

Rare 150' Malibu Beach Lot Christies International Real Estate Hyland & Hilton