Forbes

Volatile Ranks

The economy’s wealthiest take a hit from slower China, global growth.

BY RUSSELL FLANNERY

FORBES ASIA

TAIWAN’S 50 RICHEST

WEALTH LIST

IMAGINECHINA

T

aiwan has been a huge

economic beneficiary of

the post-Cold War thaw

and closer ties to main-

land China in the past two

decades. Half a million Taiwanese live in

the Shanghai area alone; exports to the

mainland account for more than a quar-

ter of Taiwan’s total. At least half of this

year’s rich list members lead businesses

that are active across the Taiwan Strait.

For the second year in a row, however,

slowing growth in once-hot China and

sluggishness globally have hurt Taiwan’s

economy and its wealthiest. Its stock market fell nearly 10%

in the past year, and its currency slipped 4% against the dol-

lar. The January election of Tsai Ing-wen from the indepen-

dence-leaning Democratic Progressive Party isn’t likely to

improve the prospects for any sort of trade or investment

pact between Taipei and Beijing.

The total wealth of this year’s Taiwan rich list shrank by

13% from a year ago to $102.4 billion, as the net worths of

30 list members fell. The cutoff for making the top 50 fell to

$850 million from $890 million last year.

Losses were heaviest among the wealthiest, as eight of

the top ten saw their fortunes shrink by a combined $10.6

billion, nearly three-fourths of the total drop. The Tsai clan,

led by brothers Daniel and Richard, held on to the No. 1 rank,

despite losing $2 billion, as shares of its Fubon Financial

fell amid a weaker environment on the

mainland. The Wei brothers (owners of

noodle and beverage maker Tingyi) was

the biggest decliner, down $2.9 billion as

its shares fell 50%. The problem wasn’t

just China. Slower business at Apple,

for instance, hurt several of its Taiwan

suppliers: Terry Gou, whose Hon Hai

Precision assembles iPhones, dropped

$700 million, while the fortune of Allen

Horng, whose Catcher Technology

makes casings for iPhones, fell by $920

million, or 33%.

In a volatile year that saw the deaths

of two 2015 listees (see box, p. 74), nine members of the 2015

ranks dropped off. Among the notable: Steven Pan, whose

hotel operator, Formosa International, was hurt by a decline

in mainland visitors, and Chen Po-Ting, chairman of Wan Hai

Lines, which was impacted by weak global shipping fees.

There were a few bright spots. Seven tycoons added to their

sums. The biggest winner was auto parts billionaire Chin Jong

Hwa. Shares of his Minth Group increased by a third in the past

year. Among the newcomers is new billionaire Archie Hwang,

the biggest investor in semiconductor equipment maker Hermes

Microvision, which is being bought for $3.1 billion.

These ranks are a snapshot of stock prices and exchange

rates on June 24, the day Britain voted to leave the EU.

With reporting by Blair Hu, Zhao Yifan, Maggie Chen,

Sue Radlauer, Andrea Murphy, Jennie Liu and Kang Jian.

Tingyi Chairman Wei Ing-Chou.

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