Philanthropy in China has had a big hike this past year. As China's entrepreneurs become more comfortable with their growing status in society, so they have started to play a more active role in addressing some of the big issues in society, especially education and health. The Tsunami and new legislation this past year have contributed in a large part to the development of a more open ‘Philanthropic Culture'. China's richest man, 3 6 -year old Huang Guangyu, and a former number one, 3 4 year-old William Ding Lei, both dug into their pockets to make their first public donations – small but highly significant.

For many entrepreneurs it is still too early for philanthropy. The biggest benefit they feel they can bring to society is to build a strong long-term business, employing more people and paying taxes.

Employment and vitality to communities

On the second annual Philanthropy List, 54-year old Beijing property tycoon Huang Rulun (on the cover) continues to lead the way, with donations of US$34.5 million since 2003 to education, poverty alleviation and health causes. A philanthropist by impulse, Huang last year donated US$1 million to a school after watching a television program on the problems these teachers were facing. Of course, no surprise as to who is the most generous individual giver in China: Li Ka-Shing, who donated US$120 million through his Foundation.

On the list of Corporate Givers, APP, an Indonesian paper business, is the most active corporate giver in China with donations of US$25 million over the past two years to education causes. Whilst for many companies there is a strong link between philanthropy and the business needs of the corporation, these companies are having a positive impact on the development of China's nascent charity sector.

One of the key topics discussed at the March National People's Congress has been the growing gap between the rich and the poor. There is still a long way to go, but the philanthropists and the corporate givers on our lists should be lauded for their efforts to date. They are helping to change the image of wealth for the better. Expect to see many more and possibly a few spectacular donations in the year to come.

Is Chinese art only a tenth as good as Western art? If not, then why has the most expensive piece of Chinese art sold at public auction to date (a bronze) only sold for US$9 million, compared with Picasso's Garcon à la Pipe, which went for US$104 million last year. Prices are rising fast as Mainland investors and collectors are coming to the market.

Whilst there are an estimated 30,000 Mainland Chinese with assets of US$10 million, only 10% have liquid assets of that amount. We have analysed how China's entrepreneurs invest their wealth.