Adapted by:
Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Xiaomi has consistently delivered strong financial results, recently achieving a significant milestone on the Hong Kong stock exchange. This impressive performance of its shares has dramatically increased the wealth of Lei Jun, co-founder and CEO of the brand, making him the richest man in China. Interestingly, he seems indifferent to this newfound wealth.
Xiaomi unleashed. The company’s shares have risen by 286% since the debut of its first electric car. The recent launch of the SU7 Ultra, which is the sportiest and most luxurious model in the lineup, has further contributed to this upward trend.
According to the Chinese financial media outlet Cailianshe, Xiaomi’s successful performance has elevated Lei’s fortune to become China’s richest person, if only temporarily. He’s surpassed other Chinese billionaires, including Nongfu Spring chairman Zhong Shanshan and Tencent CEO Pony Ma.
The richest... for a while. Cailianshe reports that short-selling activities have impeded the increase of Xiaomi’s share price. After starting the day with a 4% gain, the shares ultimately closed the session down by 5.68% on Thursday. This fluctuation allowed Lei to hold the top position temporarily until the share prices fell again throughout the day.
Lei’s net worth is estimated to be close to $44 billion. However, he denied the rumor of becoming China’s richest man during an internal chat with Wuhan University alumni.
It’s not humility, but rather a societal taboo. In the West, it’d typically bring joy for any billionaire to momentarily attain the status of their country’s wealthiest individual. However, Lei was quick to refute the news. In China, being extremely wealthy is often frowned upon. This taboo seems to stem from remnants of the anti-capitalist doctrines promoted by Mao Zedong during the late 1970s, particularly during the Cultural Revolution.
According to the BBC, public opinion in China tends to criticize millionaires who flaunt their wealth. Those who showcase an extravagant lifestyle on platforms like Xiaohongshu, often referred to as the “Chinese Instagram,” frequently face criticism from society.
Young and wealthy. Since Chinese President Xi Jinping came to power in 2013, authorities have been implementing the doctrine of “common prosperity.” The policy discourages millionaires from flaunting their wealth in order to prevent the exacerbation of social inequalities. As part of this policy, advertisements for luxury goods on radio and television have also faced restrictions.
In 2023, China launched an austerity campaign, urging large companies and financial institutions to advise their employees against traveling first class or wearing ostentatious clothing or jewelry.
The case of Jack Ma. Lei’s eagerness to downplay his supposed wealth likely stems from the lessons learned from Alibaba founder Jack Ma’s experience.
Jack Ma’s ambition to build one of China’s largest companies came at a high personal cost. Although government pressure nearly destroyed his empire, it’s since begun to recover.
Chinese secrecy. This cultural and political secrecy makes it very challenging to track China’s tech millionaires and quantify their fortunes in real time using estimates from sources such as Forbes or Bloomberg.
Annual studies published by the Hurun Research Institute estimate Chinese millionaires’ wealth, but data are distorted due to constant fluctuations in market values.
For instance, Hurun’s 2024 list ranks the top three billionaires as follows: ByteDance CEO Zhang Yiming, with a fortune of $49.3 billion; Zhong, with a fortune of $47.9 billion; and Pony Ma, with a fortune of $44.4 billion. Lei is ranked 19th on this list, with an estimated fortune of $18.3 billion. In contrast, Forbes estimates his wealth at $42.5 billion, while Bloomberg values it at $46.9 billion.
Images | Wikimedia Commons [1, 2]
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