The statue, 80 cm (32 inches) tall but weighing more than 50 kilograms, was put on display in the southern boom town of Shenzhen, China National Radio (CNR) reported.
The city was little more than a fishing village a few decades ago, and its booming prosperity epitomises China’s transformation since the days of Mao’s command economy.
The figure depicts the founder of the People’s Republic of China reclining in a chair, legs crossed.
A team of 20 artists took eight months to complete the 100 million-yuan ($16.5 million) work, which is accented with precious stones and rests on a base of white jade, CNR said.
It did not specify who had commissioned or paid for the statue.
But conflicting signals have emerged from China’s leadership about their approach towards commemorating the 120th anniversary of Mao’s birth on December 26.
President Xi Jinping, who has moved to cut back on lavish banquets and other over-indulgences since taking office, told officials in Mao’s home province of Hunan last month that celebrations should be “solemn, simple and pragmatic”.
The state-run Global Times, which is close to the ruling Communist Party, reported Thursday that an event titled “Reddest is the Sun and Dearest is Chairman Mao” scheduled for Beijing’s Great Hall of the People on the anniversary, has been rebilled as a “New Year’s Gala” and its poster redesigned.