After the massive earthquake that hit Sichuan province on May 12, 2008, Chen arrived in the quake-hit area with his rescue team and excavation equipment. He and his colleagues pulled more than 200 people out of the rubble. His team also went on to build roads in the quake-hit areas.

Chen has returned to Sichuan many times, helping the area's reconstruction with his time and money.

So far, Chen has reportedly donated 1 billion yuan to charitable causes in the country, including the reconstruction of disaster-hit regions and the building of primary schools in remote mountainous areas.

From 2008, Chen said he took his aid directly to the needy.

"Where is our money going to? That is a question that most donors asked," Chen said.

"An inadequate charity system and lack of openness and transparency on funds are the main reasons that many entrepreneurs choose to donate directly to the poor," he said.

"This has also restrained the development of China's philanthropy."

Tang Jin, a member of the standing committee of the Jiangsu provincial people's congress, echoed Chen's views.

Tang said several problems exist in the country's charity scene.

These include the high management costs of running charity organizations that make people more willing to donate to the needy directly rather than through groups.

Zheng Yuanchang, an official of the social welfare and charity affairs department under the Ministry of Civil Affairs, said regulations and standards were needed to reform the country's charity sector.

China has seen a rapid development in philanthropy in the past few years. Official statistics show that donations toward charitable causes in the country's reached 107 billion yuan in 2008, 3.5 times that of the previous year's figure.