A millionaire Chinese businessman has bulldozed the wooden huts and muddy roads where he grew up – and built luxury homes for the people who lived there.

Xiong Shuihua was born in Xiongkeng village in the city of Xinyu, southern China and said that his family had always been well looked after and supported by residents, in his childhood.

Xiong Shuihua returned to his roots and changed his neighnourhood.

So when the 54-year-old ended up making millions in the steel industry he decided to repay the favour – for free.

The 54-year-old even promised three meals a day to the older residents and people on a low income to make sure they could get by

Five years ago, the area was run down and many lived in basic homes.

But the area has been transformed in recent years and now 72 families are enjoying life in luxury new flats.

Meanwhile, 18 families, who were particularly kind to the businessman, were given villas of their own, in a project costing close to £4million.

After moving in, he even promised three meals a day to the older residents and people on a low income to make sure they could get by.

Xiong Shuihua said he could afford the development as he had "earned more money than I knew what to do with."

The multimillionaire made his money first of all in the construction industry and later by getting involved in the steel trade.

He said, "I earned more money than I knew what to do with, and I didn’t want to forget my roots.

"I always pay my debts, and wanted to make sure the people who helped me when I was younger and my family were paid back."

Elderly local Qiong Chu, 75, said, "I remember his parents. They were kind-hearted people who cared very much for others, and it’s great that their son has inherited that kindness."