Tencent boss' $2 bln gift may encourage philanthropy
The donation of more than $2 billion in stocks to charity by the founder of Chinese Internet giant Tencent is the latest example of Chinese entrepreneurs' exploration in philanthropy and corporate responsibility, facilitated by the country's maturing legal system in this field, experts said Wednesday.
The media and netizens on Wednesday are excited about Tencent chief executive Pony Ma's decision to donate the shares to a charitable foundation to support projects in health, education and environmental protection.
After earlier complaints about Chinese entrepreneurs' lack of social responsibility awareness compared with Western philanthropists, the Chinese public's responses are generally positive this time, some even comparing Pony Ma to Facebook founder Mark Zuckerberg.
"Pony Ma's generosity will have a positive impact on Chinese entrepreneurs and propel the country's philanthropy forward," Wang Liwei, CEO of China Charity Media Group Limited told the Global Times on Wednesday.
He added that he expects more entrepreneurs to devote themselves to philanthropy in the future.
Pony Ma has a net worth of $19.8 billion, according to Forbes, and had already established his first charity, the Tencent Foundation, in 2007.
He plans to donate 100 million company shares to a "new charity fund that is being set up," which will also support research into cutting-edge technology.
"After 10 years of exploration and participation in philanthropic activities, I increasingly feel that a longer-term and more organized way is needed to give back to society," Ma, the founder of Tencent Holdings Ltd, said in a statement on Monday.
More generosity
Pony Ma is not the first Chinese entrepreneur to donate a huge sum to charity. In 2014, Alibaba Group Holding Ltd founder, Jack Ma, and co-founder, Joe Tsai, pledged share options worth about $3 billion at the time to a newly established charitable trust, Reuters reported.
"Pony Ma's act of charity will set a good example to Chinese entrepreneurs, some of whom are reluctant to donate," Song Houliang, chief editor of the Beijng-based magazine China Philanthropist, which focuses on charitable acts by Chinese entrepreneurs, told the Global Times on Wednesday.
While China overtook the US as the country with the most billionaires in 2015, according to the 2015 Hurun Rich List, wealthy Chinese are less generous compared to their US counterparts and have come under public pressure to be more charitable, experts said.
"Though the country's philanthropy sector still needs to improve in many aspects, China's wealthy have done a lot for charity in recent years," Song said.
Based on a report published in January 2015 by Beijing Normal University's China Philanthropy Research Institute, donations from the country's top 100 philanthropists more than doubled in 2014 to 30.4 billion yuan compared to 2013.
"Chinese entrepreneurs now have a better understanding of philanthropy, shifting their focus from poverty relief to the development of the country's future," Song said, adding that donations in China are mainly targeted at education, and more funds will go toward scientific research and medicine in the future.
Long way to go
China passed its first charity law in March in an effort to push philanthropy forward and increase the transparency of the donations. It will take effect on September 1.
"For the first time, China has provided a legal basis at the national level for philanthropists, and has made it easier to donate. The law will encourage more entrepreneurs to join the cause," Song said.
But Chinese entrepreneurs still face many difficulties in giving large sums of money, as the new law has no specific rules regulating charitable trusts and taxes related to donations and charity funds, Wang said.
"In China, both donors and recipients have to pay taxes on donations. Many entrepreneurs find it hard to find a qualified charitable trust to manage the donations. Such problems have dampened their enthusiasm for giving," Song said.
"Donations can be made only when the fundamentals are all in place, that's why I think giving to charities is more difficult than earning money," Jack Ma said at a speech at Peking University in September 2015.
"Though Pony Ma's act of charity should be welcomed and encouraged, the effect and operability of his donation remains to be seen," Wang said.
