Meituan's Founder Donates $2.27 Billion to Personal Charity

The stock volatility for the food delivery giant continues amid scrutiny from China's antirust crackdown.
Anthony RussoJun 04,2021,14:16

Hong Kong shares in Meituan (HKEX: 3690; OTC: MPNGF) dropped 2% at the close of trading Friday after its founder Wang Xing donated $2.27 billion worth of shares to his charity.

According to a stock exchange filing late yesterday, Xing transferred roughly a 10% to the Wang Xing Foundation. The initiative focuses on public welfare and education.

The news follows another tech giant Tencent Holdings (HKEX: 0700; OTC: TCEHY) plans to spend 50 billion yuan on a similar social value initiative. It includes funding for carbon neutrality, food/energy/water provision, education, as well as technology for senior citizens and public welfare.

Also, the billionaire founder has been active with donations in recent months. Last month, Wang donated 50 million ($7.8 million) to a middle school in his native city, Fujian. And in the month prior, he made a donation to Tsinghua University, his alma mater.

"The changes regarding Wang Xing's interest in shares of Meituan represent a personal asset allocation decision that was made out of philanthropic considerations," Meituan said in a statement.

"This decision does not reflect any changes in his dedication to Meituan's business."

The generosity from Wang comes amid the scrutiny it has faced from Beijing’s fierce antitrust crackdown. According to a report from Reuters today, Meituan along with other "sharing economy" firms received a warning over their lack transparency on pricing.

In March, Meituan and five other companies were fined 6.5 million yuan ($1.01 million) in by China’s top regulator.

Since mid-February, Hong Kong shares in Meituan have dropped 32% date.

On the Forbes World’s Real-Time Billionaires List, Wang holds the 75th spot with a net worth of $23.6 billion.

Topics:Meituan, Tencent.