Chinese CEO Steps Down After Amassing $44 Billion Fortune

Colin Huang has become one of China’s richest people in the past five years after he built start-up e-commerce company Pinduoduo Inc.

After making a $44 billion fortune for himself, he has decided to step down as CEO of the company and hands the reigns to Lei Chen, another founder at the Shanghai-based company.

The move is effective immediately, PDD said in a letter to employees posted on its website. Huang, 40, will remain chairman.

“I hope that through the management changes, we can gradually hand over more managerial duties and responsibilities to our younger colleagues, give space and opportunities for the team to grow, and drive Pinduoduo to become a more mature company with continuous entrepreneurial spirit,” Huang wrote in the letter.

Huang’s net worth is $44.3 billion, the third-highest in China, according to the Bloomberg Billionaires Index.

Analysts at Jefferies and Citigroup Inc. said the move was unexpected and a surprise.

According to the letter written by Huang, he had transferred around 371 million ordinary shares currently under his name to the Pinduoduo Partnership, and that he wanted some of the stock to be used for research and social responsibility. That transfer is equal to about 7.7% of total shares.

In addition, Huang said he had officially set up a charity foundation and that together with the founding team, had donated to it around 114 million Pinduoduo shares, or about 2.4% of total shares.

Disclaimer: We have no position in Pinduoduo Inc – ADR (NASDAQ: PDD) and have not been compensated for this article.