Jack Ma's fortune a triumph for mainland, Internet

Illustration: Chen Xia/GT

Online entrepreneurs rapidly gaining ground over peers in traditional sectors

Jack Ma Yun has become the richest person in Asia.

According to the Bloomberg Billionaires Index, Jack Ma's personal fortune is worth $28.6 billion, $300 million more than his nearest rival, Hong Kong tycoon Li Ka-shing. "I am nothing but happy when young people from China do well," a gracious Li said via a spokesperson in reference to Ma's new distinction.

Long before Alibaba Group's record-breaking IPO, people often compared Ma with Li. Both had far-reaching influence over vast swathes of consumers in their respective regions. In a single day, a person in Hong Kong may start their morning by watching a television bought from Fortress, purchase toothpaste and other daily-use items at Watsons, go grocery shopping at PARKnSHOP and send messages to friends via a mobile network operated by Hutchison Telecommunication International Ltd. All of these businesses, of course, are part of Li's business empire. Meanwhile, a person on the mainland can meet most of their daily shopping and consumption needs through Taobao, Tmall and Alipay.

But while Ma's fortune has grown over recent years, Li has been selling off his assets in Hong Kong and the mainland as his businesses have oriented more toward markets in Europe. Ma though has focused instead on spreading his reach within the promising mainland market.

Today's billionaires are emerging mostly from the Internet and technology sectors, rather than from traditional industries. Indeed, over the past three years, most of the key news items reflecting the vitality of the mainland economy relate to Internet businesses: including the explosive rise of Singles' Day as the biggest online shopping day of the year, the emergence of Xiaomi Technology Co as a potential challenger to Apple Inc and Samsung Electronics Co, as well as Alibaba's chart-topping IPO. China's e-commerce enterprises are likely to become world class companies as soon as they take their first steps toward growth. In contrast, real estate enterprises, for example, remain heavily dependent on government policy decisions, which leaves them in an unenviable position as China's economy decelerates.

This year's Hurun Rich List 2014 also highlighted the ascendancy of China's Internet and technology companies. Entrepreneurs from Alibaba, Tencent Holdings, Baidu Inc, jd.com and Xiaomi accounted for half of the top 10 spots on Hurun's list; while real estate executives held just two slots, down from six in 2013. Although the manufacturing and real estate sectors may account for most of China's billionaires, the ability of Internet-based businesses to create wealth is becoming increasingly clear.

Ma's swelling fortune also shows that it is more beneficial to stay in China than to look to markets elsewhere. Almost all of Li's past successes were in the Hong Kong market. But with Hong Kong's market reaching maturity, the potential for future development remains limited. Therefore, Ma's recent overtaking of Li is actually an expression of the mainland market's triumph over the more mature Hong Kong market. The success of mainland-based Internet companies demonstrates its economic vitality and its growing consumptive power. Those who cater to mainland consumers will win favor in the local market; while those who refuse them will gradually be swept aside.

Ma's business achievements are certainly worth celebrating. However, 50-year-old Ma is rapidly becoming an elder in an industry where longevity is rare. In order for China's Internet industry - as well as its broader economy - to continue growing, it is time for more young people to step forward and drive the next wave of innovation and success.