The Chinese government’s ongoing crackdown on private companies has reportedly resulted in a Chinese billionaire losing over $27 billion this year.
Thanos snapped: Colin Huang, founder of the Chinese e-commerce platform Pinduoduo Inc. (PDD), lost nearly half his wealth as Beijing continues to impose stricter restrictions on tech giants and U.S.-listed Chinese companies, according to Bloomberg.
The new policies reportedly resulted in Pinduoduo’s American depositary receipts (ADR) falling 44% year-to-date. Pinduoduo's market value fell to about $125 billion after reaching a peak of $178 billion.
Huang, who owns 28% of PDD, suffered the biggest loss among the 500 members of the Bloomberg Billionaires Index and is now worth about $35 billion, when in February he was worth $70 billion. Huang's loss is even bigger than the estimated $16 billion that China Evergrande Group Chairman Hui Ka Yan lost this year.
Huang resigned as the company’s chief executive officer last year and quit his post as chairman in March.
Growth halted: Founded in 2015, the e-commerce giant was doing relatively well last year, even exceeding Alibaba's 779 million users in its online marketplaces with 788 million users in December.
However, President Xi Jinping’s vision for "common prosperity" eventually forced tech companies to initiate efforts that would close China's wealth gap, reported Time.
The previously untouchable tycoons are now being told to maintain a low profile, impose fair policies on workers, prioritize government initiatives and avoid criticizing the Chinese Communist Party in public.
Last year, Huang and PDD's founding team donated $2.4 billion worth of company shares to a charitable trust. A month ago, PDD also pledged $1.5 billion to help in improving China’s agriculture sector.
Alibaba Group Holding Ltd's ADRs also fell by 33% while Tencent Holdings Ltd's shares in Hong Kong dove this year by 20%.
Featured Image via Xinhua
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