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Wang Xing speaks during the 6th World Internet Conference (WIC) at Wuzhen International Internet … [+]
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Wang Xing has donated a $2.3 billion stake in his food delivery giant Meituan to his own philanthropic foundation, according to a stock exchange filing issued late Thursday.
Wang, 42, transferred 57.32 million shares to the Wang Xing Foundation, according to the filing. The donation, which represents 10% of his personal stake in Meituan, is worth HK$17.6 billion based on Thursday’s closing price.
“The changes regarding Wang Xing’s interest in shares of Meituan represent a personal asset allocation decision that was made out of philanthropic considerations,” the company said in a statement. “This decision does not reflect any changes in his dedication to Meituan’s business. The foundation to which the shares were donated will dedicate the funds to the education industry and scientific research.”
The share transfer comes at at time when China’s government is cracking down on the tech sector. Meituan is under investigation for alleged anti-trust practices known as “er xuan yi,” or “choose one of two,” an exclusive arrangement that prevents merchants from doing businesses on other platforms. Chinese e-commerce giant Alibaba was fined a record $2.8 billion in April for similar monopolistic practices.
Together with e-commerce platform Pinduoduo, Meituan was reprimanded in May by the Shanghai Consumer Council. The consumer group criticized Meituan for refunding issues, food delivery failures and using misleading content on its platform, causing the company’s shares to tumble.
In the meantime, Wang isn’t the only billionaire to donate shares as Chinese authorities focus on the business practices of the country’s tech giants. Pinduoduo’s billionaire founder Colin Huang stepped down as chairman in March after donating a 2.37% stake to his charity foundation.
The billionaire has also taken steps to reassure investors. He pledged to cooperate with anti-trust regulators and improve compliance standards during an analyst call last week, when the company unveiled better-than-expected results for the first quarter.