What’s new: Wang Xing, the billionaire co-founder of internet giant Meituan, has cashed in a total of about HK$420 million ($53.3 million) by selling some of his holdings in Chinese electric-vehicle (EV) maker Li Auto Inc. last month, according to filings on the Hong Kong Stock Exchange.
Wang offloaded close to HK$310 million worth of Li Auto’s Hong Kong-traded shares six times from March 21 to March 30 and around $14 million worth of the firm’s American depositary shares three times between March 20 and March 22, the filings show.
Wang remains the biggest external shareholder of Li Auto after the sale, holding a 22.35% stake in the EV-maker, down from 22.57%, according to the filings.
The transaction is a personal move made by Wang and accounted for a very small part of his holdings, a Li Auto spokesperson told Caixin. The move did not involve Meituan’s holdings in the firm, the person said.
Li Auto’s shares closed down nearly 4% in Hong Kong on Tuesday.
The background: Wang was among Li Auto’s early backers, having participated in the company’s series C funding round in August 2019 in which $530 million was raised.
Li Auto has been faring better in recent months compared with its peers amid a fierce price war in China’s auto sector. In the first quarter of this year, Li Auto delivered 52,584 cars, up 65.8% year-on-year. Meanwhile, Nio Inc. saw deliveries increase 20.5% and XPeng Inc.’s deliveries dropped around 47% in the same period.
Contact editor Bertrand Teo (bertrandteo@caixin.com)
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