Changes in wealth rankings lead to Temu's founder becoming China's wealthiest individual.
Tech magnate Colin Zheng, recognized as Huang, is one of China's most powerful billionaires, yet maintains a low profile in the public eye. This is not surprising, considering China's stance against those who excessively flaunt wealth, which can lead to sudden disappearances.
Many may be familiar with the shopping app Temu, but fewer know its creator: Colin Zheng, a 44-year-old Chinese billionaire who leads a startup. With immense growth in the USA and Europe, Temu's success has boosted Huang's status, making him the wealthiest individual in China, according to Bloomberg's billionaire ranking, with an estimated net worth of $51.7 billion.
Most of Huang's wealth comes from his 25% stake in Pinduoduo (PDD), which includes Temu. Thanks to the app's prosperity, he surpassed mineral water tycoon Zhong Shanshan, whose net worth is at $47.4 billion, as per Bloomberg's records. Huang's primary competitor, Jack Ma, founder of the equally famous shopping platform Alibaba, currently ranks fifth with $33.6 billion.
Colin Zheng, of humble origins, grew up with factory worker parents in the eastern Chinese port city of Hangzhou, now known as China's Silicon Valley and home to Alibaba's headquarters. As a student, Zheng excelled in mathematics and language studies, attending an elite language school to learn English. Later, he pursued computer science at the University of Wisconsin and adopted the Anglicized name Colin.
Zheng's early professional ventures saw him migrate to the West, securing a job as a software engineer at a small Silicon Valley startup (Google) post-graduation. Returning to China, he founded his first companies in 2007 and later Pinduoduo in 2015, positioning it as a platform for rural farmers rather than high-end shopping in China's major cities.
Zheng merged the business models of China's internet giants Alibaba and Tencent - shopping and gaming - which enabled him to venture into the Western market, a venture Alibaba had been hesitant to embrace. In 2022, PDD launched Temu and swept across the Western market with discount games, lucky wheels, and digital fish feeding.
Zheng's wealth fluctuates not only with Temu's app's stock price but also with the Communist Party's mood swings, like most prominent Chinese billionaires. Without the backing of the CCP, economic success of this magnitude is hardly achievable for individuals like Zheng in the People's Republic. Their wealth and influence are too public, and their companies too influential - posing potential threats to the leaders in Beijing. Those who push their economic interests too enthusiastically, slip down the party's internal rankings, or are portrayed as emblems of corruption can face swift reprisals from the state security, often disappearing without trial, legal representation, or due process.
Since rising to power in 2012, President Xi Jinping has dismantled numerous politicians, officials, and billionaires through high-profile anti-corruption campaigns, often resembling Hollywood spectacles. For instance, Chang Xiaobing, CEO of China Telecom, Yim Fung, CEO of a major financial brokerage, and Bao Fan, founder of China Renaissance Holdings, all vanished without a trace for weeks. Xiao Jianhua, CEO of Tomorrow Holdings, was abducted in broad daylight from a Hong Kong luxury hotel - in a wheelchair, with a blanket over his face. Xu Xiang, owner of a significant investment firm, was kidnapped from his car. Police blocked a 36-kilometer bridge for Xu's arrest. Even Meng Hongwei, China's Interpol chief, was detained during a visit home and later sentenced to 13 years for corruption. In a nation without independent courts, it's challenging to distinguish truth from fiction.
Colin Zheng appears to have taken note from a particular incident in his industry: Following Jack Ma's public criticism of China's financial sector policies, Ma vanished for months in 2020. Conversely, Zheng appears to be a billionaire favored by President Xi: He donated a portion of PDD for charitable purposes, contributed $100 million to his alma mater, Zhejiang University, stepped down from PDD's leadership, and kept a low profile since spring 2021.
Despite his significant wealth and influence, Colin Zheng, the creator of the popular shopping app Temu, has managed to maintain a low profile in China, a country known for its stance against excessive wealth flaunting. In fact, Zheng's modest demeanor and charitable contributions, such as donating to his alma mater and stepping down from PDD's leadership, have earned him favor from Chinese President Xi Jinping.
