Yu Pengnian said he is transferring his remaining fortune, estimated at $470 million in cash and property, to the charity he founded. Mr. Yu's gift brings to $1.2 billion the total of his donations to the Yu Pengnian Founation.
Hurun Report, a group that ranks China's wealthiest people, calls him the first philanthropist in mainland China to give away more than $1 billion. While Mr. Yu made his fortune in Hong Kong, he is now based in Shenzhen.
Mr. Yu, shown in Shanghai last month, was once so poor he operated a rickshaw to earn money.
Mr. Yu, shown in Shanghai last month, was once so poor he operated a rickshaw to earn money.
"I will not leave my fortune to my children," Mr. Yu said in an interview. "If my children are more capable than me, it's not necessary to leave a lot of money to them. If they are incompetent, a lot of money will only be harmful to them."
Philanthropy in mainland China has been on a tear, rising in line with the country's overall wealth, and the net worth of its richest individuals. According to Hurun, the top 50 most generous people in China donated 8.21 billion yuan ($1.2 billion) in 2009, more than double the 3.89 billion yuan the top 50 donated in 2008.
By comparison, American charitable donations fell 75% last year as a result of the financial crisis. The 50 most-generous donors in the U.S. gave $4.1 billion to charity in 2009, down from $15.5 billion the previous year, according to data compiled by the Chronicle of Philanthropy.
Born in China's Hunan province in 1922, Mr. Yu grew up in humble surroundings, at one point operating a rickshaw to earn money. In 1958, he traveled from Shanghai to Hong Kong, where he gradually built up a fortune in the property and hotel industries.
"I understand the misery of the poor people because I used to be so poor," Mr. Yu said.
His first effort in charity came in 1984, when he visited his hometown in Hunan. Shocked by the poor medical conditions in rural China, he donated 10 ambulances to local hospitals. Later, he found that his donation was used instead to supply cars for local government officials. That disillusioning experience, he said, later prompted him to found his own charitable group.
"It's very important to track every penny spent in charitable projects, and I believe it only when I see, hear and touch by myself," Mr. Yu said.
The Yu Pengnian Foundation, which he founded in 2003, mainly funds projects in education and health care. After he was successfully operated on several years ago to remove cataracts, Mr. Yu's group began offering free cataract treatments for the poor, and his charity has helped cure more than 150,000 patients with eye diseases in rural China since 2003, he said.
In the past two decades, Yu Pengnian donated $1.2 billion to good causes, $470 million in the past year alone. He talks about his motivations and his causes. His latest plan is to fund 200 foreign students to pursue degrees in Chinese universities.
Other Chinese entrepreneurs are following Mr. Yu's lead. Chen Fashu, a 50-year-old mining mogul, announced at the end of last year a plan to donate shares he holds in his company over time to establish a fund with an estimated value of 8.3 billion yuan.
Niu Gengsheng, chairman of China's largest dairy company, also pledged to donate all his shares to a charitable foundation he set up in 2005.
China's regulations on nongovernmental organizations and private charities are still strict, making it difficult for them to become officially recognized. Mr. Yu's foundation didn't get the nod from Beijing until last year, seven years after he set it up.
Meanwhile, most nongovernmental organizations and private foundations aren't allowed to raise money publicly in China. As a result, most donations go to government-affiliated organizations such as the Red Cross Society of China and the China Charity Foundation, which are often criticized for not being transparent.
While he may be China's biggest charitable donor, he is far from its richest. On Hurun's list of China's top philanthropists, Mr. Yu has taken the No. 1 spot for five years running, but he ranks 432 on the list of wealthiest Chinese people.
Mr. Yu hopes, though, that his actions will prompt more wealthy Chinese business people to follow his lead. "In the past, we [Chinese] have always been the ones receiving donations. It's time for us to give," he said, "We can hold our heads up now."
Philanthropy in mainland China has been on a tear, rising in line with the country's overall wealth, and the net worth of its richest individuals. According to Hurun, the top 50 most generous people in China donated 8.21 billion yuan ($1.2 billion) in 2009, more than double the 3.89 billion yuan the top 50 donated in 2008.
By comparison, American charitable donations fell 75% last year as a result of the financial crisis. The 50 most-generous donors in the U.S. gave $4.1 billion to charity in 2009, down from $15.5 billion the previous year, according to data compiled by the Chronicle of Philanthropy.
Born in China's Hunan province in 1922, Mr. Yu grew up in humble surroundings, at one point operating a rickshaw to earn money. In 1958, he traveled from Shanghai to Hong Kong, where he gradually built up a fortune in the property and hotel industries.
"I understand the misery of the poor people because I used to be so poor," Mr. Yu said.
His first effort in charity came in 1984, when he visited his hometown in Hunan. Shocked by the poor medical conditions in rural China, he donated 10 ambulances to local hospitals. Later, he found that his donation was used instead to supply cars for local government officials. That disillusioning experience, he said, later prompted him to found his own charitable group.
"It's very important to track every penny spent in charitable projects, and I believe it only when I see, hear and touch by myself," Mr. Yu said.
The Yu Pengnian Foundation, which he founded in 2003, mainly funds projects in education and health care. After he was successfully operated on several years ago to remove cataracts, Mr. Yu's group began offering free cataract treatments for the poor, and his charity has helped cure more than 150,000 patients with eye diseases in rural China since 2003, he said.
In the past two decades, Yu Pengnian donated $1.2 billion to good causes, $470 million in the past year alone. He talks about his motivations and his causes. His latest plan is to fund 200 foreign students to pursue degrees in Chinese universities.
Other Chinese entrepreneurs are following Mr. Yu's lead. Chen Fashu, a 50-year-old mining mogul, announced at the end of last year a plan to donate shares he holds in his company over time to establish a fund with an estimated value of 8.3 billion yuan.
Niu Gengsheng, chairman of China's largest dairy company, also pledged to donate all his shares to a charitable foundation he set up in 2005.
China's regulations on nongovernmental organizations and private charities are still strict, making it difficult for them to become officially recognized. Mr. Yu's foundation didn't get the nod from Beijing until last year, seven years after he set it up.
Meanwhile, most nongovernmental organizations and private foundations aren't allowed to raise money publicly in China. As a result, most donations go to government-affiliated organizations such as the Red Cross Society of China and the China Charity Foundation, which are often criticized for not being transparent.
While he may be China's biggest charitable donor, he is far from its richest. On Hurun's list of China's top philanthropists, Mr. Yu has taken the No. 1 spot for five years running, but he ranks 432 on the list of wealthiest Chinese people.
Mr. Yu hopes, though, that his actions will prompt more wealthy Chinese business people to follow his lead. "In the past, we [Chinese] have always been the ones receiving donations. It's time for us to give," he said, "We can hold our heads up now."
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