Zhang Xin and the Emergence of Chinese Philanthropy

This case examines the recent emergence of Chinese business philanthropy through the case of the SOHO China Foundation established by the wife and husband real estate moguls Zhang Xin and Pan Shiyi. It begins by describing the early careers of Zhang and Pan, and how they came together to create a highly successful real estate company active in Beijing and Shanghai. The case puts their creation of the SOHO China Foundation in the context of the wider emergence of business philanthropy in China, especially after the Sichuan Earthquake in 2008, and under the heavy influence of the government and the growth of inequality. Zhang and Pan deviated from the norm by limiting their domestic philanthropy while endowing $100 million to create financial aid for Chinese students to obtain undergraduate education at top universities in the United States. A $15 million gift to Harvard and a $10 million gift to Yale was part of this initiative. Their two sons attended those universities shortly afterwards. The gift to rich American universities received considerable criticism in China, as did the couple’s failed attempt to sell SOHO China to Blackstone in 2021. The case ends with the implications for Zhang and Pan’s philanthropy of the changing political situation after 2016, including the anti-corruption campaign, multiple new restrictions on the real estate sector, and President Xi’s pursuit of common prosperity which encouraged the wealthy businesses and people to give back to society. The case can be taught in courses concerning business and philanthropy, and more generally on the real estate sector in modern China.