Pioneering Chinese entrepreneur Ma Shengli has passed away in Shijiazhuang, capital of the northern Hebei Province, his family said on Friday.

Born in 1938, Ma, also known as "Contractor Ma," died of lung disease on Thursday evening, said Bai Zhihe, one of his sons-in-law.

As an ethnic Hui, Ma's funeral will be held according to Muslim tradition, said Bai.

Ma leapt to prominence for his contracting activities in the wake of China's opening and reform policy being launched in 1978. In 1984, he contracted a state-owned paper mill in Shijiazhuang, saving it from bankruptcy. By 1987, he had contracted more than 100 enterprises, and formed a paper mill group under his own name in 1988. Three years later, the loss-making group was dissolved and Ma was removed as head of the Shijiazhuang paper mill.