Meituan founder donates $ 2.27 billion in stock as charity grabs Chinese billionaires
The founder of food delivery giant Meituan (3690.HK) will donate shares worth around $ 2.27 billion to his personal charity, a stock market record revealed on Thursday. the latest Chinese tech billionaire to make such a move.
CEO Wang Xing’s share donation comes as Meituan and other so-called platform economy companies come under scrutiny from China’s competition regulator, which announced an investigation into Meituan in April.
On Thursday, the market regulator warned Meituan and several other “sharing economy” companies against opaque pricing practices.
“The changes regarding Wang Xing’s interest in Meituan shares represent a personal asset allocation decision that was made for philanthropic considerations,” the company said in a statement. “This decision does not reflect any change in his dedication to Meituan’s business.”
In March, the founder of e-commerce giant Pinduoduo (PDD.O), Colin Huang, announced that he was stepping down as chairman after selling off 2.37% of his shares last year, worth $ 1.85 billion.
Last month, ByteDance founder Zhang Yiming announced he would step down as CEO of TikTok owner. Read more
“The timing is a little sensitive,” said Xie Wen, a former chairman of Yahoo China turned critic of China’s tech industry, adding that he didn’t think there was a single reason behind such decisions.
“Wang is a person with a sense of social responsibility, according to my understanding of him,” he said.
Wang will convert 57.319 million class A shares into class B shares and transfer the class B shares to the Wang Xing fund, which promotes education and scientific research.
In April, tech giant Tencent (0700.HK), which Reuters says faces antitrust sanction, pledged to invest 50 billion yuan ($ 7.81 billion) in environmental initiatives and social. Read more
($ 1 = 6.4040 Chinese renminbi yuan)
(This story has been passed on to correct the company name in paragraph 1 in Meituan from its old name Meituan Dianping)
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