Share Holdings of Founding and Managing Partner of Sequoia Capital China in Meituan Fall to 5.29%
According to the latest equity information from HKEx, on October 25, Neil Shen, the founding and managing partner of Sequoia Capital China, reduced his holdings in Meituan by 2,674,600 shares. As the stock price was trading at HK $287.13 per share, it is estimated that at least $768 million will be cashed out.
Neil Shen is also a non-executive director of Meituan. After the reduction in shares, Shen now holds 288 million shares of Meituan, seeing his shareholding ratio dropping to 5.29%.
Since the beginning of this year, affected by various factors, Meituan‘s share price has fallen from HK $460 at the beginning of the year to its current HK $272, a cumulative decline of nearly 60%. Its market value is now only HK $1.67 trillion.
Since 2021, Shen has reduced his holdings of Meituan shares several times. In early September, Shen cashed out about 422 million yuan, and his shareholding ratio dropped to 5.79%.
As for Shen’s action, industry insiders said that the reason may be concerns about anti-monopoly regulations placed on the Internet industry last year. At the same time, Meituan is currently dealing with new demands from authorities to provide better social security to its delivery people.
The document issued by State Administration for Market Regulation in August clearly pointed out that the catering platform and third-party cooperative companies should provide social insurance for take-out food delivery drivers who sign contracts with the platform.
SEE ALSO: Meituan to Pay Social Security for Food Delivery Riders as Required by Chinese Government, Share Price Plummets
Though facing difficulties, Meituan has seen some success. LatePost reported on Wednesday that at the monthly business meeting, Meituan announced a new round of adjustments, including the establishment of a special group to make decisions regarding all retail-related businesses. Under the guidance of relevant departments, Meituan has also accelerated the agreement of occupational injury insurance for delivery riders.