China’s one-year old stock exchange ChiNext – comparable with Nasdaq – might not have brought many investors high returns, writes Bloomberg, but has according to Rupert Hoogewerf, composer of the Hurun rich list, increased the wealth and raised the number of billionaires.
The creation of ChiNext helped spark a jump in the number of rich Chinese, said Rupert Hoogewerf, founder of the Hurun Report, which compiles an annual list of China’s wealthiest people.
“This year we’ve found about 400 people with a billion yuan, many of them coming through listings,” Hoogewerf said in an interview in Beijing last month. “We’ve seen ChiNext create a whole lot of new wealth that we didn’t even know existed.”
Local investment banks have benefited too. Fees for ChiNext IPOs average 5.14 percent, according to Bloomberg data, more than double those for first-time sales on the main board in Shanghai. ChiNext offerings have generated 5.17 billion yuan in total fees, the data show.