SHANGHAI, CHINA - THE credit crunch and financial crisis have more than halved the combined wealth of China's richest people, Forbes magazine said on Thursday as it released its annual Chinese billionaires list.

The ranking illustrates how fortunes have risen and fallen over the past tumultuous year as the net worth of China's 40 richest people fell 57 per cent to US$52 billion (S$76.5 billion) from US$120 billion dollars last year, Forbes Asia said.

Coming out on top was Shanghai-based agricultural feed tycoon Liu Yongxin with a net worth of three billion dollars while 20 billionaires including paper recycling queen Yan Cheung, who was once ranked as China's richest person, have dropped off the list entirely.

Last year's number one, property heiress Yang Huiyan, saw US$14 billion wiped off of her fortune in part due to ill-timed acquisitions, Forbes said. She fell to number three on this year's list with US$2.22 billion.

Number two on the list, with US$2.7 billion, is Huang Guangyu, founder of Gome, China's largest chain of consumer electronics stores. Mr Huang, a native of south China's Guangdong province who also goes by the Cantonese name Wong Kwong Yu, moved up eight spots from last year.

Mr Liu, this year's number one, started building his fortune in 1982 when he and his three brothers used US$120 in savings to start raising quails and chickens, the magazine said.

They split up the business in 1995 and are now China's only family of billionaires.

Mr Liu moved to Shanghai, where his East Hope Group is one of China's biggest feed companies, the magazine said. He also owns aluminium smelters.

Among those who from last year's list who failed to return was Larry Yung, whose Citic Pacific lost up to US$2 billion due to unauthorised currency bets.