Richard Liu, the billionaire who founded e-commerce giant JD.com, has given up all of his shares in two subsidiaries, in the latest move by a Chinese tech mogul who has stepped back from management amid Chinese President Xi Jinping’s “shared prosperity” campaign.
Liu transferred his 45% stake in Xi’an Jingdong Xincheng Information Technology and Suqian Jingdong Tianning Jiankang Technology to Miao Qin, vice president of JD.com, according to filings with the Hong Kong Stock Exchange. Xi’an Jingdong is a wholly owned subsidiary of JD Logistics, which raised $3.2 billion in an initial public offering last year, while Suqian Jingdong is wholly owned by JD Health International, the tech giant’s healthcare arm. JD Health International’s $3.5 billion listing in December 2020 was Hong Kong’s largest initial public offering of that year.
This step came in order to “improve the administrative efficiency” of the two companies, according to the filings. In April, Liu, 48, resigned as CEO of JD.com, but remained as president to “focus on JD Group’s long-term strategies, guide young management and contribute to the revitalization of rural areas,” according to regulatory filings.
China’s Internet sector has been shaken by the increased scrutiny that began in 2020. Since then, many Chinese billionaire founders have quit running their companies, such as Zhang Yiming of ByteDance and Colin Huang of Pinduoduo. in july, The Wall Street Journal It was reported that Jack Ma of Alibaba plans to relinquish control of the fintech giant Ant Group.
Liu founded JD.com in 1998 and is one of the richest people in China. in Forbes The most recent list of the 100 richest countries in China, Liu ranked 28th with an estimated net worth of $17.6 billion.