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The great Chinese capitalist cuts down trees in Meituan and Pinduoduo

The Chinese capital has grown sales of three of its largest assets, now part of the country’s largest technology company, as Beijing’s review of the sector brings new rules.

Neil Shen, head of Sequoia Capital China, has sold $ 215m in shares in the fast-growing retail program Pinduoduo, Meituan food giant and Dada Nexus delivery platform.

His investment in Pinduoduo, New York, and Meituan, in Hong Kong, have helped Shen top the Forbes’ Midas List as Asia’s most successful capitalist for several years. His 53-year-old fortune is expected to be $ 4.4bn.

“In China’s economy, there is Neil Shen and then everyone else,” said one greedy businessman. “He’s the only one who’s been a banker, a businessman and a salesman, and that gives him a chance.”

Shen’s largest stores were in Meituan, where it was paid $ 530m as a result of a security breach last month.

He sold about $ 100m of Meituan shares used through a family car and in his name on October 25. This followed his sale of $ 55m of shares in September, which marked his biggest sale of shares at the time and a second sale. since the company provided the public, according to documents in Hong Kong.

Meituan driver delivers food in Beijing. Neil Shen’s biggest sales were in the caterer © Greg Baker / AFP / Getty

Ever since he founded Sequoia’s Chinese arm more than a decade ago, Shen has been created a VC firm becoming one of the most popular businesses in China. The group completed 96 contracts in the third quarter, making it the most active fund in the world, according to CB Insights.

The boom in Sequoia Capital China came at a time when other global currencies were suspended for an indefinite period of time. More recently, government officials have moved on to crack down on the professional education business, which has cost billions of dollars, and stopped the shipping belt of Chinese companies heading to New York.

Chinese President Xi Jinping established a iron distribution campaign In August this prompted the country’s technical experts to promise a large portion of their profits to charities.

In September, Shen began releasing some of its most important shares, such as Meituan and Pinduoduo, which appear to be the company’s first sales. Sequoia has invested $ 370m in Pinduoduo on three secret assets since 2017, paying nearly $ 1.22 a share.

Pinduoduo’s fortune was at $ 107 on Sept. 8 when Shen and his family car started selling 280,000 units worth about $ 30m, according to Form 144s stored in the US. Shares of the ecommerce group have come down from their February peak of $ 212.

Shen sits on the Pinduoduo board and can continue to hold shares in the company. He did not respond to a request for comment on his sales pitch.

Three Pinduoduo executives, including chairman and chief executive Chen Lei, also sold shares in September, and each earned $ 7m in their first sale the company revealed in 2018, according to Form 144 data surveyed by Bradford Lynch. -Levy at Wharton School’s Forensic Analytics Lab.

“Form 144 data provides a unique record for the sale of large shares in China due to the SEC’s long-term disclosure rules to foreign suppliers that allow foreign companies to effectively hide their business from investors,” said Lynch-Levy.

Pinduoduo did not respond to a request for comment.

Shen in September also moved to sell the $ 30m shares in Dada Nexus, a delivery platform that connects companies and freight forwarders to deliver their products to consumers.


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