Liu Manhong, Mannie Professor, Renmin University May 24, Astana

A Recent Survey by China Merchants Bank (2011) China’s private individuals’ investable assets reached 62 trillion RMB (close to 1 trillion USD) in 2010 (est, 72 trillion in 2011) Total number of people in High net worth group: 500,000 Net worth more than 10 million RMB Very high net worth group: Net worth more than 50 million RMB Ultra high net worth group: 20,000 Net worth more than 100 million RMB

A Recent Survey by China Merchants Bank, II High net worth people, 50% at age 40 to 50 With college and graduate degree: 80% Among Professional Managers, three characteristics: Education level is generally high Age turns to be young Women to men ratio: 50/50 (notice: here we are talking about only professional managers)

A Survey from Hurun (2011) High net worth population: 960,000 Up 9.7% from last year Average age 39 Men and women ratio: 7:3 Ultra high net worth population: 60,000 Average age 43

China High net worth Population: Three Characteristics (based on HSBC survey 2009) Age relatively younger: 83% them are below age 55 ， only 17% are age 55 and above; whereas in Japan this group is 73% ； South Korea is 61% 。 Resources of their assets: First generation entrepreneur 62% ， no or little inheritance, but in Japan inheritance is about 30% ； India 23% ； Singapore 22% Women accounted for a relatively high percentage 38%, whereas in Australia ， this number is 15% ； India: 12% ； all less than half of that number of China

China’s Angel Investing Started in 1986 (863 Scheme) Active since 1990s when VC and PE were becoming very important 2009, several important angel conferences Currently, over 50 angel groups, not really collaborated with each other Very active and very famous angels appear on the news papers and other media

Active Angels and Future China Private Investment Potential Investors Acceded Investors Angel Investors Active Angel Investors 960,000 ? 48,

Angel Investing: Chinese way Govern ment support startups Angel invest Intellectu al Property Many Angel Investors do not speak English, but with enormous domestic investment experience But Chinese culture adores big, in fact, small should be appreciated Chinese people working hard and have a ‘saving gene” But collaboration with others may be a problem

Unique Characteristics, I China’s Current Angel Market: Two Track Systems Groups of angels who are professional, speaking English, with a good international connection Sea turtles International companies managers Groups of angel investors speak no English, with little international connections but no less professional Majority of angels in China Domestic self made entrepreneurs

Unique Characteristics, II Supper Angels and Ordinary Angels Many Supper Angels investing over 5 million USD per investment Supper Angels are popular Ordinary Angels are unknown But who are the ones should be promoted

Some figure about angel investment in China In 2006 ， The size of angel investing was around $100m-$200m. 86% of the Chinese angel investors emerged on 2005, 60% of them start angel investing from 2009.(by Kaifu Li,CEO of Innovation Works) 76% of the angels focus on M-Commerce and TMT industry, only 32.2% in traditional services industry.(by Manzi Xue,independent Angel investor)