Meituan co-founder cashes out US$44.3 million amid Chinese stock rally

Mu Rongjun, an executive director of the on-demand delivery firm, sold the shares after a 240 per cent price rally since a February low

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On-demand delivery giant Meituan is seen as potentially one of the biggest beneficiaries of a rebound in Chinese consumer spending. Photo: Shutterstock

Published: 1:05pm, 4 Oct 2024Updated: 1:31pm, 4 Oct 2024

A co-founder of Chinese food delivery giant Meituan sold 2 million of his Hong Kong-listed shares in the company on Monday, cashing out about HK$344 million (US$44.3 million) amid a recent rally in Chinese stocks.

Mu Rongjun, an executive director and senior vice-president at the Beijing-based on-demand delivery firm, sold the shares at a price of HK$171.8, according to a disclosure filed to the Hong Kong stock exchange on Thursday. His Meituan stake now stands at 1.02 per cent, down from the 1.06 per cent previously. Mu is worth US$3.4 billion, according to Forbes.

Meituan shares rose 3.3 per cent to HK$211.8 in Hong Kong on Friday morning. The stock has rallied 240 per cent since hitting a low in early February.

Mu cut his holdings three months after Meituan announced a plan to buy back shares valued up to US$2 billion. The company said the buy-back was not guaranteed in terms of timing, quantity or price.

Meituan’s second-quarter revenue surged 21 per cent year on year, reaching 82 billion yuan (US$11.6 billion), bolstered by steady growth in its core local commerce operations focused on food and grocery delivery. Profit jumped 142 per cent to 11 billion yuan for the quarter.

On Thursday, the company announced the issuance of US$2.5 billion in senior notes to professional investors. This includes US$1.2 billion in notes with a 4.5 per cent coupon due in 2028 and US$1.3 billion in notes with a 4.625 per cent coupon due in 2029.