Property mogul unveils start-up fund
Shih Wing-ching aspired to a better life, quit his secondary school teaching job and established Centaline Property Agency in 1978.
Thirty-two years later, Shih, now 61, has stepped down from the helm of what is now one of the two largest property agencies in Hong Kong and one of the biggest on the mainland. This time he is chasing other dreams.
A start-up fund and book writing are what he has in mind. 'I plan to set up a venture capital fund that will invest in start-ups in Hong Kong. Anyone who believes he has a sound business idea can submit a proposal to me,' Shih said.
He is willing to give up to HK$5 million to each start-up, but with a rider. Those backed by his fund will have to abide by his business philosophy - a third of the profit has to be distributed among employees.
'One-third must go to employees, one-third to shareholders and the rest is to be kept for future development,' Shih said.
Imperfection in profit distribution was the root of all problems in many societies, he said.
Employees in the start-ups he backs must also have the right to participate in decision making, rather than just execute the boss' orders.
Shih said his core business philosophy, which was influenced by his early studies of Marxist literature, centred on these two aspects - profit sharing and dignity of the individual employee.
The proposed venture fund is part of a charitable foundation he has set up and which also runs poverty alleviation programmes in rural areas on the mainland and conducts disaster relief projects.
Shih has not revealed the size of the charitable foundation to which he transferred in 2008 all his shares in Centaline and am730, a free tabloid newspaper he established in 2005.
Centaline shares represent 45 per cent of the foundation, which made HK$1 billion last year. Annual dividends from the two companies are the foundation's operating capital.
After finishing secondary school, Shih worked as a lowly paid teacher at a leftist school. 'I wanted to change the world at the time.'
He quit the job in 1976 and took up a job at a small property development firm before starting Centaline.
Now Shih says he wants to improve the living standards of Hong Kong people and the economy through his business philosophy. The venture capital fund, he said, was aimed at creating business opportunities for Hong Kong people and would improve the local economy.
'Nowadays, people are only interested in buying stocks of companies rather than create new businesses. That will not improve this economy.'
On the decision to step down as Centaline chairman, he said: 'I want the company to thrive even when I'm not around. So the role of the founder must fade out.'
Sherman Lai Ming-kai, who took up the role of vice-chairman and chief executive of Centaline in 2008, has been named chairman.
Shih said his children - Janet, Alex and Vivian - understood they would not inherit his fortune and that they were free to choose their own careers.
