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Jack Ma's feat in overshadowing Li Ka-shing on Asia's rich list will resonate with many people, especially the younger generation on the mainland.
Opinion
Mr. Shangkong
by George Chen
Mr. Shangkong
by George Chen

China's second generation rich pose risks with 'quick money' thinking

Choice of Jack Ma or Li Ka-shing as a role model highlights different thinking of China's rich kids

It's really been a season of changes. Early this month China was confirmed by the International Monetary Fund as having overtaken the United States as the world's No 1 economy. Last week, Jack Ma Yun, the founder of e-commerce giant Alibaba, became Asia's richest man, edging out Hong Kong's Li Ka-shing.

While some readers may see little impact on their daily lives from China's newly elevated economic status, Ma's feat in overshadowing Li on Asia's rich list will resonate with many people, especially the younger generation on the mainland.

Many of the young mainlanders whom I have met over the past decade, whether in colleges or enterprises, struck me as smart and ambitious - with some, perhaps a little too ambitious.

Here's why I have some concerns about how Ma's success could skew the priorities of some of these people.

My father has a good friend who owns several businesses in eastern China. He's been thinking about his family business succession plan.

His son has made it clear that he is happy to take over his father's assets but has no interest in so-called traditional businesses such as property and construction. A member of the "second rich generation" on the mainland, the son is more interested in making quick money, such as creating an iPhone app or a website, and then get the business listed on Nasdaq. His ultimate goal - cash out and enjoy life - is not uncommon in China nowadays.

However, the success story of Alibaba is a combination of many factors. A key factor, the vast and sophisticated personal network of Ma on the mainland, cannot be simply copied to other business models.

Li started with a plastic-flower factory and began investing in Hong Kong property after the 1967 riots depressed prices. The road to success for Li - whose flagship assets include Cheung Kong (Holdings), one of the world's three biggest property developers - has at times been bumpy over the past decades. As such, it may prove a more practical reference point for aspiring entrepreneurs.

I respect both Li and Ma as dynamic businessmen but it might be too early to say whose business has been more successful and, perhaps more importantly, more sustainable in the long run - let alone speculate on which of the two is the best role model for China's young.

We've seen many ups and downs on list of China's richest people over the past decade. I think Ma would agree that he would still have a lot to learn from Li.

In contrast, if the mindset of the son of my father's friend becomes pervasive among the young on the mainland, then I sense that the rush to get rich quick could even build up potential risks for the Chinese economy.

 

This article appeared in the South China Morning Post print edition as: Get-rich-quick mentality may pose risks
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