Faces of Reform and Opening-Up: Wang Shi: Entrepreneur, billionaire, philanthropist & sports enthusiast
Updated 10:32, 27-Dec-2018
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Now it's time for our special series, Movers and Shakers, as we meet some of those who have made remarkable contributions to the Chinese economy and society, during the country's reform and opening-up. Today we have the story of a man who built a company, a system, a team, and a brand. His achievements and personality made him an icon unique in China's development path. Let's meet real estate tycoon, Wang Shi.
In 1979, in a shabby construction camp in Shenzhen, water drainage engineer Wang Shi heard the roaring bulldozers and excavators. Those noises meant the start of a new era. In 1983, 32-year-old Wang Shi came back to Shenzhen. After having been a soldier, an engineer and a civil servant, Wang Shi decided to start his own business. He didn't know then that he was a member of the first group of private business owners that would change China's economic landscape once and for all.
The biggest success of reform is that people can choose the lifestyle they like. In the year of (1983), I moved to Shenzhen. At that time I am (was) already 32 years old. Before that (time) I already (had) done many different jobs. I was a servant in the army (for) 5 years as a driver.
I had been a junior servant in government. Also, I did not like that (the job). And step by step, (were) not my choices. But suddenly (I) found the beginning of reform and opening up and special economic zone. I liked that. That were good opportunities for me. I think I (needed) to try to do something.
In 1984, Deng Xiaoping, the chief architect of China's reform and opening-up, visited Shenzhen and gave the first of his Southern Tour Talks. The private sector was encouraged. That same year, Wang Shi changed his company name to Vanke. With Wang's diligence and vision, and his team of passionate young colleagues, Vanke enjoyed phenomenal growth. The business expanded from trading corn and technical equipment to the more promising real estate. Wang Shi and his young team were enjoying the benefits as China's reform and opening-up pioneers.
You worked very very hard and because that was your choice. For my company, at the beginning as a business dealer. (Major businesses were) about importing electric instruments and some steel and timber many different kinds of products. And we were learning from HK, because I dealt with a businessman who came from Hongkong.
Shenzhen was developing very quickly and (became) very very big (in scale). And I think that Hong Kong played a very important role. For example, before I went to Shenzhen, I met a Hong Kong people in Guangzhou whose name is Liu Yuansheng. So three years later, I went to Shenzhen (and) I connected with him. Liu Yuansheng was also a businessman.
So he taught me as a tutor of our business. I remembered that Mr. Liu said I believe you and I trust you. And I believe you, you can do something very very helpful not only for your company but also for Shenzhen for the future of China.
In 1988, Vanke was in the first group of private companies that went through the shareholding reforms, a key step in China's push for modern enterprises and a market economy. After some considerations, Wang Shi gave up his personal shares. Those shares would worth tens of billions of dollars by now if Wang Shi still had them. But he put the company's future above his personal interests and won the respect of many. His personal charisma and a modern company culture attracted hundreds of young people.
In 1988 after my company (has been transformed into) a public company. In the reform of shares that 60% (shares) belonged to the government, and 40% belonged not only (to) me but also my team.
You were the majority of the shares of your company right? I said I give up. Of course (it was) not easy, even I remembered that nearly several days and nights I could not (get to) sleep. Something like that Shakespeare said in Hamlet: to be or not to be. Get your up, get or not. something like that.
In Chinese traditional culture, they don't worry (about being) poor but worry (about) inequality. If I am very poor (it will not be) a problem. You will certainly be big difference if you suddenly (become) very very rich, and it will be a big problem. I was also caring about that I was not sure at that time even I could deal with very well about personal wealth. I was not sure. After so many years, even today, I am glad to say I decided it right.
With a modern enterprise culture and transparent system, Wang Shi quickly built Vanke into China's largest residential real estate developer, and a Fortune 500 company. In 1991, Vanke went public in Shenzhen, becoming the first real estate company to be listed in China. Wang Shi adopted a "respecting people and giving no bribes" policy that has influenced thousands of other companies in all sectors. He stayed humble and insisted on learning from around the world. In 1999, Wang Shi retired from Vanke's CEO to reduce his personal mark on the company.
now you mentioned that I retired as CEO. I hope Vanke to become a famous brand, not only a famous brand (but) also a great company. Chinese traditional culture influences the company. In my opinion, in a modern company, company culture is originally from the western culture. Western culture is more focused on the concept of system, but Eastern culture, especially the East Asian culture, it is more focused on persons, personal, great leaders. So I try to do more as a team. That's (to those) young managers, (We should) give them duty, responsibility, and of course, independence. So at that time, I decided to resign as CEO.
Baoneng's attempted hostile takeover of Vanke in 2015 stunned everyone. Wang Shi, as chairman of Vanke, stood up in the takeover battle. He was under huge pressure after calling Baoneng "savages at the door". He said Baoneng was not fit for Vanke's culture and values. After over one year's effort, Wang Shi received support from Shenzhen Metro as well as new stock regulations and won the battle.
From my feeling (for that event), I think it is a very good example. Firstly, the event has nearly drawn the attention of everyone. That gives a very good education (lesson) about the "shared market", about public companies, how to manage, and control the danger (risk management) in a shared market. Secondly, you mentioned because you gave up the majority of your shares about the company, so you could no longer control your company, that was true. But as you said, such an ancient has to be changed. As you say Alibaba, the public company in America is not found by a majority, but you can still control the company. You can solve this sort of problem.
Wang Shi is an accomplished mountain climber. He conquered Mount Qomolangma, or Mt. Everest twice, all seven summits on seven continents and reached both the South and North Poles. His experience inspired many, and also changed his attitude toward life.
Not only for normal people, even for professional climbers, mountain climbing is not easy, but I can. I have (conquered) Mount Everest, also seven continent peaks. I have also hiked South and North Pole. That means seven plus two. I can choose my personal life. I am not only a (successful) career businessman, but also a successful adventurer. I think society needs that(adventurous men), heroes. Now I think my mind has been changed a little bit. So I think that's not enough. Giving you an example, after I conquered 7 continents, I began to conquer the North Pole. I organized a team of 7 people, including a female member. On the way, I found 2 members who were weaker than other members. They influenced our (marching) speed. So after we have conquered the North Pole, later at the beginning of South Pole adventure, I decided to reject the female member and weaker members (to join us). But now, I think that the arrangement was wrong (to exclude the weak), because we were a team. As a team, the strong can help the weak and help them try their best.
Wang Shi's name in Chinese means King Rock. He's an entrepreneur, a mountain climber, and a billionaire who gave up his fortune. He's also a lifetime learner, wanting to learn beyond China's 40 years' of glory. At the age of 67, his next destination is Israel, to study Hebrew. For there's always more to learn, for Wang Shi, for China.