Alibaba´s one million US jobs: mainly good PR - Jeffrey Towson

Jeffrey Towson

When Alibaba´s Jack Ma met US president-elect Donald Trump and announced he would create one million jobs in the US, it was already taken with a pinch of salt. Mainly good PR, says Peking University professor Jeffrey Towson to AFP, by a Chinese company focusing on the US as its next market.

AFP:

While dominant in its home market, and making forays into Russia and Southeast Asia, Alibaba's efforts in the US have so far failed to find the same success. 

Its business model as a platform offers US consumers no extra benefits, Li said, and it faces dominant local competitors such as Amazon and eBay. 

Even so Ma wants half of Alibaba's revenue to be international within 10 years.

The firm's Ant Financial affiliate, which operates digital payments service Alipay, and Tmall International are likely to be its "primary vehicles" for gaining a US foothold, Jeffrey Towson, professor at the Peking University Guanghua School of Management, told AFP. 

"Alibaba is serious about the USA," he said, adding the Trump meeting was "good PR" for the firm and introduced Ma to many Americans who had not heard of him.

"Every business person in China, and globally, now knows that what Trump wants to hear about is US jobs. So that is what they are all now saying." 

After the meeting the two multi-billionaires praised one another, with the Chinese tycoon calling the president-elect "very smart" and "very open-minded".

More at AFP.

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IT-firms galore in wealth creation - Rupert Hoogewerf

Rupert Hoogewerf

The Rupert Hoogewerf´s Hurun China IT List illustrated over the years where money in generated in China´s economy. IT-tycoons are super wealth creators, says Hoogewerf to the China Daily, not only for themselves, but for many others too.

The China Daily:

Jack Ma, founder and executive chairman of e-commerce giant Alibaba Group Holding Ltd topped the ranking of China's richest IT people for the third consecutive year, defending his position against rivals including Tencent Holdings Ltd founder Pony Ma. 

Jack Ma and his family's total wealth in IT industry was 195 billion yuan, followed by Pony Ma, whose wealth increased by 30 percent year-on-year to 134 billion yuan, according to the Shanghai-based Hurun Research Institute. 

Due to the rapid growth of the online gaming sector, NetEase Inc founder Ding Lei doubled his wealth to 96 billion yuan, surpassing Baidu Inc Chairman Robin Li and ranking third in the IT rich list. 

Hurun Chairman Rupert Hoogewerf said: "Those entrepreneurs should be called 'super wealth creators' instead of simply 'rich people', which could highlight their contribution to China's society and economy. They've created such a lot of opportunities and jobs."

More in the China Daily.

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A new wave of wealthy Chinese - Rupert Hoogewerf

Rupert Hoogewerf

Famous wealthy Chinese like Wang Jianlin and Jack Ma are still up and running, but a new wave of billionaires is moving up in the ranks of the annual Hurun China rich list, says its founder, Rupert Hoogewerf to Reuters. “Today it is about using the capital markets for financial investment,” he says, like Baoneng’s Yao Zhenhua.

Reuters:

Yao Zhenhua, the chairman of Baoneng Group and the biggest riser since 2015, saw his wealth shoot up 820% to $17.2 billion, elevating him to fourth in the overall list. Yao has been at the center of a hostile takeover battle for China’s largest real estate developer China Vanke Co Ltd. 

Hurun founder Rupert Hoogewerf said Yao represented a new wave of wealthy Chinese, those whose money came from playing the financial markets as opposed to more traditional routes like trade or manufacturing. 

“There’s a new type of wealth creation coming out,” he told Reuters, adding China was having to adapt as the wider economy was “very materially slowing down”. “Today it is about using the capital markets for financial investment,” he said. 

Baoneng, a financial conglomerate that had been a relative unknown, rose to prominence over the last year by becoming the largest shareholder in Vanke, though drew criticism from Vanke’s own chairman over where it was getting its funds.

More in Reuters.

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Beijing has more billionaires than New York - Rupert Hoogewerf

Rupert Hoogewerf

Beijing is now having more (US$) billionaires than New York, says Hurun rich list founder Rupert Hoogewerf in his latest report, according to AP, despite the fierce drop in stock prices of the last six months.  "People will look at China the same way that people looked at Stanford or Silicon Valley in the 1990s."

AP:

Rupert Hoogewerf, the founder of Hurun, attributed China's explosive wealth creation to Chinese market regulators allowing a flood of new initial public offerings after holding back new IPOs for several years. 

Hoogewerf said his wealth calculations were made using stock prices as of Jan. 15, which means they took into account the Chinese market's 40 percent tumble over the past half year. 

Had the calculations been made at the market's peak last summer, the number of Chinese billionaires would have been nearly 150, Hoogewerf said. 

Beijing took the title from New York after minting 32 new billionaires last year, while New York gained four. Moscow came in third place, with 66 billionaires, while Hong Kong and Shanghai came in fourth and fifth with 64 and 50, respectively, Hurun said. 

China's richest man, real estate tycoon Wang Jianlin, came in 21st place globally behind Wal-Mart scions, the Swedish family that owns Ikea and Brazilian investor Jorge Paulo Lemann. Other Chinese billionaires in the global top 100 included Alibaba founder Jack Ma, beverage magnate Zong Qinghou, and the tech bosses at phone maker Xiaomi, social media firm Tencent and Baidu, the search engine. 

Hoogewerf said China had a particularly high proportion of self-made billionaires compared to the United States. 

"What we showed today is that at the super-wealth creation level, the Chinese are now leading," Hoogewerf said. "People will look at China the same way that people looked at Stanford or Silicon Valley in the 1990s."

More in AP.  

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Lesson #1 from Alibaba: Be visible - Joel Backaler

Joel Backaler

Jack Ma of Alibaba made a recent splash by his visit to the US, and more Chinese companies want to follow in his footsteps. Joel Backaler, author of China Goes West: Everything You Need to Know About Chinese Companies Going Global explains in Forbes the rules to be learned from Alibaba.

Joel Backaler:

Jack Ma, chairman of Chinese e-commerce giant Alibaba, recently returned to the city where his firm made history last year with its record-breaking $25 billion IPO. First in New York and then in Chicago, Ma emphasized the importance of ‘cross-border e-commerce’. This relatively new form of e-commerce enables Chinese consumers to purchase products directly from the US and other international markets via Alibaba’s TMall Global online platform. This booming industry is expected to grow from $40 billion in 2014 to as large as $240 billion by 2020. There’s a huge market up for grabs, and competition is intensifying – NASDAQ-listed JD.com recently launched its similar JD Worldwide, while other ‘pure cross-border’ companies like Shanghai-based Ymatou.com are quickly gaining ground. 

Ma’s high-profile US visit had two goals. First, it enabled him to promote cross-border e-commerce and explain how American businesses can capitalize on the emerging phenomenon to sell their products to Chinese consumers. Second, it provided him a platform to address mounting concerns about counterfeit products being sold on Alibaba’s sites. Ma’s fluent English and ability to navigate complex and sensitive topics are key assets that have enabled him to connect with Western audiences. However, there are three more important lessons that Chinese CEOs who wish to ‘go global’ can learn from Jack Ma and Alibaba. 

Lesson #1: Be Visible 

Chinese companies, especially in traditional business-to-business sectors, have often built success through a relentless focus on short-term sales. Given the size of the Chinese market and rapid pace of economic growth, their firms often grew without extensive focus on activities like marketing, branding and public relations. Yet these three capabilities are critical for Chinese firms expanding overseas in order to proactively build and manage their international reputations. 

Alibaba’s successful example demonstrates how important it is for Chinese CEOs to personally invest in spending time with overseas governments, trade associations and media to shape perceptions, rather than appearing only during times of crisis. During Alibaba’s high-profile IPO roadshow, Jack Ma traveled to 10 different cities around the world serving as the face of Alibaba. He accepted interviews and guest spots with nearly every major international business media outlet. His firm produced high-quality videos, articles, and a wide variety of online and offline content positioning the firm as a global company with a track record that is comparable to other more established multinational firms.

More lessons in Forbes.

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Jack Ma spends most on philanthropy - Rupert Hoogewerf

Rupert Hoogewerf

In China, Alibaba´s executive chairman Jack Ma, is the most generous philanthropist, according to the l2015 Hurun Philanthropy List, writes Yibaba. His donations amounted to 14.5 billion yuan or 2.4 US dollar. The Hurun Philantropy List is produced by Rupert Hoogewerf´s China Rich List.

Yibaba:

With a total donation worth 14.65 billion yuan ($2.36 billion), Ma and his family retained the top spot they had in 2014 on the new list published by Hurun Report on Sunday. 

The list is based on donations made from April 1, 2014 to March 31 this year. Ma's notable charity efforts include the establishment of a personal philanthropic trust and a HK$1-billion donation for the creation of foundation for startups in Hong Kong. 

Ma is followed by electronics chain owner Tang Lixin with 315 million yuan in donations, and Dalian Wanda chairman Wang Jianlin and his son Wang Sicong with 311 million yuan. Established in 2004, The Hurun Philanthropy List ranks the 100 most generous people on mainland China based on the value of their cash or equivalent donations on a yearly basis. For the past 12 months, the top 100 gave 20.23 billion yuan, a decline of 720 million yuan from the past year. 

Of the top 100, 46 are from the mainland, which includes Li Hejun, China's richest man and chairman of Hanergy Holding Group Ltd., with assets of $26 billion. Li ranked No. 36 with donations of $40.7 million, including $20 million allotted to forestation projects in northwest China's Gansu Province. 

Donations in the education sector were most prominent, particularly to the alma maters of donors and overseas universities. According to the list, Tang donated 300 million yuan to Chongqing University to build a new information building, while Chinese real estate tycoons Pan Shiyi and his wife Zhang Xin gave 94.7 million yuan to Harvard and Yale to put them in 19th place. 

Former Premier Zhu Rongji also came in at No. 88 with a 15.2-million-yuan donation to the Practical Education Foundation, an organization he established in 2013 to benefit students from poor families in China's less developed regions.

More at Yibaba.

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Li Hejun replaces Jack Ma as China´s richest man - Rupert Hoogewerf

Rupert Hoogewerf

Li Hejun, a solar energy entrepreneur whose Hanergy Holding Group Ltd has become China´s richest man, according to a new calculation on Tuesday by the Hurun Rich List, founded by Rupert Hoogewerf, writes Reuters. Wang Jialin and his family of Dalian Wanda retained the second place.

Reuters:

E-commerce tycoon Ma and his family slipped to No. 3 in China, and No. 34 globally, on the Hurun Global Rich List, with a personal wealth of US$24.5 billion. He was pipped by Li with a net worth of US$26 billion. The No. 2 spot was held by Dalian Wanda Commercial Properties Co Ltd's Wang Jianlin and his family. 

Li's Hanergy Group has been the subject of analyst concern over what the Financial Times last week called "unconventional practices" between the firm and its US$19.7 billion Hong Kong-listed subsidiary Hanergy Thin Film Power Group Ltd. 

Most of the subsidiary's reported revenue since 2010 came from equipment sales to its parent and a large chunk of contracts were unpaid as of 2013, the FT reported. 

Hanergy Thin Film Power Group will "expand our customer base and diversify our source of revenue" and the majority of contracts owed had been repaid, the company said in a filing to the Hong Kong Stock Exchange last week addressing the FT report.

More in Reuters.


Li Hejun

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Alibaba´s Jack Ma losing shine as China´s richest man - Wei Gu

Wei Gu

Alibaba´s shares took a firm dive this week, and as a side-effect chairman Jack Ma might be losing his position as the country´s richest man, writes wealth editor Wei Gu in the WallStreetJournal. Property mogul Wang Jianlin might replace him.

Wei Gu:

A little-known new energy entrepreneur and a property tycoon are set to surpass Internet mogul Jack Ma as China’s richest man. 

Ma, 51, and the founder and executive chairman of Alibaba Group, saw $1.4 billion of his fortune wiped out Thursday following revelations earlier this week by a Chinese regulator that the company had lax oversight on counterfeit goods sold on its market places, as well as other alleged illegal activities on its sales platforms. 

On Thursday in New York, Alibaba shares fell as much as 11% before closing down 8.8% following its lackluster earnings report, as its revenue growth of 40% missed analysts’ expectations, despite its sites hosting a record-breaking online sales day in November. Ma owns 8.8% of Alibaba, according to the company’s IPO filing. 

Alibaba’s shares are still trading  31% above their  initial public offering price in September, when its blockbuster $25 billion listing vaulted Mr. Ma to become China’s richest man. His wealth is now estimated to be $23.1 billion, down from $24.2 billion in mid-December, according to Chinese wealth tracker Hurun Report and a Wall Street Journal tally. 

More Alibaba shares could flood the market when a lock-up period for shareholders expires. Some shareholders can sell up to 40% of their holdings 180 days after Alibaba’s listing in mid September. That would mean around mid-March. 

Chinese property mogul Wang Jianlin, chairman of Dalian Wanda Group, 61, has now surpassed Mr. Ma in terms of wealth. After successful listings of its commercial properties arm in Hong Kong in December and a cinemas unit in Shenzhen in January, his wealth has jumped to $28.1 billion, up from $23.4 billion in mid-December, according to Hurun and The Wall Street Journal’s calculation.

More in the Wall Street Journal.

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Wang Jianlin´s poor IPO spoiled his no.1 position - Rupert Hoogewerf

Rupert Hoogewerf

Until last week both Jack Ma of Alibaba and Wang Jianlin were in the race to become the richest man in China in 2014. A poor IPO in Hong Kong spoiled his chances, explains China Rich List founder Rupert Hoogewerf, in the China Daily. But it is not the end of the game.

The China Daily:

Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, which compiles the widely followed Chinese rich list, predicted this month that Wanda's share price would have to rise by at least 30 percent for Wang to overtake Ma as China's richest. 

In comparison, Ma's Alibaba soared by 38 percent on its New York Stock Exchange debut. Stock analysts and wealth watchers say Wanda Commercial's cool reception on its Hong Kong debut has reduced the value of Wang's stake in the company by about $300 million. This is about 1.2 percent of Wang's estimated personal net worth of $24.8 billion, according to the Bloomberg Billionaire's Index. 

But Wang is still ahead of Mukesh Ambani, India's richest man, ensuring that the top three places on the list of Asia's wealthiest are all Chinese. 

On the list, Wang ranks third after Hong Kong property tycoon Li Ka-shing, who has $29.4 billion, and Ma with $29.1 billion. 

Analysts said a setback on the first day of trading isn't uncommon for IPO stocks. "An IPO does not end in one day. The closing price of Wanda Commercial was in line with market expectations,"Hoogewerf said. 

"Unlike the information technology industry, the real estate sector has been slowing down. But the downturn will provide great opportunities for well-financed real estate developers to expand," Hoogewerf added. 

The Wanda Commercial IPO has helped Wang to fulfill one of his dreams, Hoogewerf said. "To top the rich list is not what Wang wanted; rather, he wanted the largest IPO." Hoogewerf said more Chinese companies have been tapping overseas capital markets for funding this year. 

"We have seen more action on the international front than in the previous 15 years added together," he said.

More in the China Daily.

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