Tycoon launches China's biggest charity foundation

A TYCOON ranked China's 15th richest person has donated most of his stake in his holding company to set up the country's biggest charity foundation.

Chen Fashu, 48, president of Fuzhou-based Xinhuadu Industrial Group, launched the Xinhuadu Charity Foundation today in Beijing with 90 percent of his stake in the group, which is traded on the Shenzhen market, China National Radio reported today.

The donation is estimated around 8 billion yuan (US$1.17 billion), making the foundation the country's biggest of its kind, based on today's closing price for Xinhuadu of 29.6 yuan.

The foundation will be modeled on Bill Gates' Bill & Melinda Gates Foundation and mainly help schooling in poverty-stricken areas, according to Li Xin, Xinhuadu's assistant to the president.

Chen was ranked as the 15th on last week's Hurun list of China's richest with a personal wealth of 25 billion yuan.

Chen's fortune comes mainly from Zijin Mining, one of China's largest nongovernment mining companies. He has expanded to the property, investment and retailing sectors.

He is the second largest shareholder of Yunnan Baiyao Group and third largest shareholder of Tsingtao Brewery Co Ltd.

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