Dismal Fate Awaits China's Millionaires

The growing but volatile ranks of China's millionaires found themselves with a new leader yesterday as the young internet entrepreneur Ding Lei came from nowhere to head the latest list of the country's 100 richest people.

But any joy Mr Ding might have felt at being named by Forbes Magazine as the wealthiest person in the world's most populous nation is likely to have been tempered by the fate that has befallen many former members of the ranking, which the Chinese media now describes as the "death list."

Mr Ding - the 32-year-old founder of Netease, a web portal and online gaming firm - is thought to be worth around £540m. Reflecting the frontier spirit that characterises much of China's spectacular economic growth, he is one of 35 newcomers to the list.

But many former members made ignominious or violent exits. Among the recently departed are Yang Bin, the tulip entrepreneur who was second on the list two years ago with a fortune of £495m, but is now serving an 18-year prison sentence for bribery and fraud; and Yang Rong, the car firm executive who was third in 2001 with £494m, but now lives as a fugitive in the US while the Chinese government pursues him for suspected "economic crimes".

Several others have met more grisly ends. Li Haicang, 27th on the list last year, was shot dead in a feud with a business partner. Ciao Jinling, who was 58th, hanged himself in September, reportedly because of financial problems.

Zhong Dajun, the former editor of the China Business Times, said inclusion in the list could bring unwanted scrutiny by the tax authorities, the police or the media.

"If every private Chinese enterprise was thoroughly checked, I would say that almost none of them would be able to remain in business," he said. "Almost all of them do something illegal, such as tax evasion, bribery or forgery."

Others, however, say the dire fortunes of the rich reflect a suspicion of wealth which harks back to the early days of the Communist government when landowners and entrepreneurs faced "re-education".

The current leadership, however, wants to foster a commercial class and has invited tycoons to join the Communist party.

Reflecting the confused spirit of the age, the website of the People's Daily, the mouthpiece of the party, recently ran a piece entitled Don't Be Too Sensitive to Billionaires. The super-rich, it said, should be considered "common persons".

It went on to say that much of the criticism aimed at the wealthy began when they proved unwilling to give money to charity.

Mr Ding, who has an unusually clean reputation, will do well to take note.