Chinese billionaires endorse private sector push

Billionaire Tencent Holdings Ltd. co-founder Pony Ma has penned a lengthy op-ed backing Chinese pledges to resuscitate the private sector, becoming the most prominent entrepreneur to endorse Beijing’s promises to unshackle a giant swath of the economy.

China’s third-wealthiest person echoed many of the sentiments in an official policy document published Wednesday that called for the revival of private businesses, at a time the world’s No. 2 economy is struggling to gain momentum. He was joined by Xiaomi Corp. co-founder Lei Jun, the smartphone mogul turned EV entrepreneur, who in a separate editorial likened the policies to a manifesto for quality growth and innovation.

Ma, who rarely voices his opinions but has publicly supported important policies in the past, penned an article for state-owned CCTV in which he called private enterprise pivotal to the nation, and explicitly referenced Chinese President Xi Jinping’s previous proclamations on the matter. He talked about the advent of AI and how the country needed to embrace next-generation technology.

Ma’s comments are notable given Tencent was among the corporations targeted by a sweeping crackdown on the private sector that began in 2020 with the scrapping of Ant Group Co.’s IPO.

“We must once again embrace the opportunities presented by the coming industrial revolution,” Ma wrote in his op-ed carried on CCTV’s website. Using the policies as a guide, “we will look ahead with confidence and redouble our efforts.”

Tencent’s shares gained more than 2.6% in early Hong Kong trading, outperforming the broader market, while Xiaomi climbed 1.8%.

China spent the better part of two years reining in the country’s most powerful tech firms, including Alibaba Group Holding Ltd. and Didi Global Inc., along with their ultra-rich founders. That clampdown eroded investor and entrepreneurial confidence and chilled a private sphere that was crucial in propelling the Chinese economic miracle of past decades.

But Beijing has sent clear signals since late 2022 that it’s relenting, driven in part by the need to enlist private firms to revive the economy. In July, it ended years of scrutiny into Ant and the fintech sector after imposing more than $1 billion of fines.

In the latest pledges to unshackle the sector, the country’s top decision-making bodies on Wednesday vowed to treat private companies the same as state-owned enterprises, and encouraged officials to consult entrepreneurs before drafting and evaluating policies. Beijing will also boost support for private companies in share listings, bond sales and overseas expansion, according to the statement.

“The policies are a guiding light for the private sector,” Lei penned in separate comments carried by local media and confirmed by a company representative. “They will be a driving force for high-quality development and scientific advancement.” Bloomberg