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Meituan founder donates USD2.3 billion shares as China's market regulator crack down on monopoly practices of the country's tech giants

June 4, 2021 6:25 pm

Wang Xing, the founder of local services and food delivery giant Meituan will be donate Meituan shares worth about USD2.3 billion to his own philanthropic foundation, according to Meituan’s exchange filing to Hong Kong Stock Exchange.

Detail: Wang transferred 57.32 million shares that represents 10% of his personal stake in the company to his personal foundation, making him the latest Chinese tech billionaire to make such a move.

Meituan said a statement that Wang’s fund would be used for education and scientific research.

“This changes regarding Wang Xing’s transfer of shares represent a personal asset allocation decision and it does not reflect any changes in his dedication to Meituan’s business,” Meituan said.

Context: The shares transfers comes at the time when Meituan and other tech giants are under investigation for anti-monopoly practice commonly know as choose one of two, Chinese authorities have started to investigate into Meituan in April.

On Thursday, China’s market regulator (SAMR) warned Meituan and several other platforms economy companies over opaque pricing practices.

Wang is not only one tech billionaire to transfer shares as Chinese authorities crack down on market monopoly of the country’s tech giants

Pinduoduo’s billionaire founder Colin Huang stepped down as chairman in March after donating a 2.37% stake worth USD1.85 billion to his charity foundation.