A CHINESE woman has become not only the wealthiest person in the world’s most populous country but the richest self-made woman on Earth.

Cheung Yan, 49, is a paper tycoon with a fortune even greater than that of Oprah Winfrey or J. K. Rowling. The short-haired, simply dressed and slightly stocky Ms Cheung is chairwoman of China’s biggest paper-recycling company, Nine Dragons Paper.

The public listing of Nine Dragons Paper on the Hong Kong stock exchange in March catapulted Ms Cheung to No 1 on China’s richest list compiled by the Hurun Report, up from 36th place last year.

Her personal fortune, including the 72 per cent of Nine Dragons Paper that she owns, is now estimated at more than $3.4 billion (£1.8 billion), compared to $375 million a year ago. She overtakes Huang Guangyu, the 37-year-old founder of China’s biggest electronics retailer, whose wealth is estimated at $2.5 billion.

Like many of the new breed of super-rich entrepreneurs in this Communist country, Mrs Cheung keeps a low profile. This is in part to avoid attracting the limelight in a system where private businesses only won protection of their property under the constitution as recently as 2004.

Ms Cheung is the eldest of eight children born to a military family in the northeastern Heilongjiang province and still has a heavy regional accent.

She said in one rare interview: “In those days we only had meat to eat on holidays and our clothes were patched. But the lack of material things made me appreciate the value of possessions. My parents always encouraged us to face life and solve our problems independently and this laid a good foundation for my career.”

She began building her fortune in 1985 when, with less than $4,000, she set up a wastepaper trading business in Hong Kong. The economy boomed and within six years she had accumulated substantial capital.

In the early 1990s, Ms Cheung and her Taiwan-born husband, Lai Ming-chung, moved to Los Angeles where they created America Chung Nam, which is now the leading exporter of scrap paper in the United States.

With China establishing itself as a huge manufacturing force, Ms Cheung spotted an opportunity for paper to package the countless products being exported around the world or marketed at home. She said: “To forecast the market ahead of your competitors — coupled with large amounts of investment — made us into the market leader.” To recycle the scrap paper traded from America, Ms Cheung set up a mill in 1995 in the booming Pearl River delta in the southern Guangdong province, calling it Nine Dragons Paper.

It is now China’s largest manufacturer of containerboard. Its net profit quadrupled in the year to June 30 amid sharply higher demand for packaging paper and its shares have soared more than 120 per cent since its trading debut on March 3. Last month Ms Cheung announced that Nine Dragons Paper planned to more than double capacity by the end of 2008. Ms Cheung is a rare phenomenon in China, where only one woman sits on the Communist Party’s 24-member Politburo despite Chairman Mao’s famous remark that “women hold up half the sky”.

Rupert Hoogewerf, who compiles the annual survey, said: “China’s women are becoming more visible in business. Traditionally women have always been on the inside and men have been on the outside.”

This year 35 women figure on the 500 richest list. Among the others are the metals trader Chen Ningning and her mother in twentieth place with $800 million, and the television presenter turned business- woman Yang Lan of Sunmedia Investments, with $500 million.

China’s new rich have taken to conspicuous consumption with relish, frequenting Louis Vuitton stores and favouring such brands as Celine, Chanel, Ferrari and Cartier. But many of those on the Hurun list are low-key individuals who avoid publicity and try not to show off their wealth — at least at home in China.

Ms Cheung advises a would-be woman entrepreneur to “know what she is suited to and not force herself. She must be open-minded, able to withstand pressure and be in good health. Plus, achieving a balance between career and family is crucial.”

CHINA’S RICH LIST

1 Cheung Yan, 49, Nine Dragons Paper, £1.8bn

2 Huang Guangyu, 37, founder of Gome Electronics, £1.35bn

3 Zhu Mengyi, 47, property developer, £1.13bn

4 Xu Rongmao, 56, property developer, £1.08bn

5 Shi Zhengrong, 43, solar panel manufacturer, £1.05bn

6 Larry Rong Zhijian, 64, property, steel and power interests, £970 million

7 Chen Zhuolin, 44, and family, property developers, £920m

8 Zhong Shengjian, 48, property developer, £750m

9 Zhang Li, 53, property developer, £730m

10 Zu Jiayin, 48, property developer, £670m

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