Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Fashion E-Retailer Mogu Gets Livestreaming Lift in Otherwise Dismal Quarter
Chinese-Focused Food Delivery App HungryPanda Raises $70m
Trending in China: Should Chinese School Employees be Punished for Celebrating Thanksgiving?
China Exempts Tesla Model Y from Purchase Tax
GL Ventures Leads $265m Series C Round in Chinese SaaS Edtech Firm EEO
In 165 countries, China's Beidou eclipses American GPS
China On Cusp of Becoming Third Ever Country to Collect Lunar Samples as Chang’e 5 Prepares for Moon Landing
JD.com Among Bidders for Japanese Skincare Brand Fancl’s Asian Business: Reuters
Trending in China: Did Sichuan Forget to Tell Chongqing About Their Joint Olympic Bid?
Alibaba’s Healthcare Unit Finds Tonic for Profits
Trending in China: Beijing Tackles Parking Shortage With Shared Spaces
Chinese Wireless Telecoms Operators Join Forces to Build 5G Base Stations to Reduce Costs
Ruhnn, Another U.S.-Listed Chinese Company Looks to Go Private
Unicorns surge to 500 in number as US and China account for 70%
Trending in China: Social Media Comes Out in Support of High Quality Fakes
Xiaomi-Backed IoT-Enabled Appliance Maker Sees Revenues Grow While Profits Slump
Chinese Startup WeRide Reports Promising Robotaxi Results
Trending in China: God recalls his hand – tributes to Maradona from Chinese social media after his death
Tesla to Manufacture Electric Car Chargers in China
China Restricts Livestreaming Spending and Blocks Underage Users from Tipping Performers
Trending in China: Pinduoduo Founder Becomes China’s Second-Richest Person

By Yilin Chen / Jun 22, 2020 06:03 PM / Society & Culture

What’s trending?

Huang Zheng, founder and CEO of China’s e-commerce upstart Pinduoduo, now has a net worth of $45.4 billion dollars, according to Forbes’ Real-Time Billionaires Rankings. That means he has surpassed Alibaba founder Jack Ma to become the second-richest person in China, closely trailing behind Pony Ma, founder and CEO of Tencent.

What’s the story?

In the short five years since its founding, Pinduoduo has overtaken rival JD.com to become China’s second largest online retailer after Alibaba. Thanks to increased user engagement as people have turned to online platforms amid the Covid-19 pandemic, the Nasdaq-listed company’s shares have doubled in value since the beginning of the year.

After rapid growth in the first quarter of 2020, Pinduoduo’s market value rose sharply in June, triggered by robust sales during the annual nationwide shopping promotion on June 18. During the shopping festival, the number of orders on Pinduoduo exceeded 1.1 billion. The company now boasts a market capitalization of over $104 billion with over 628 million active buyers. Huang owns a 45% stake in Pinduoduo and has quickly risen to the top ranks of China’s wealthiest people. However, the company is far from profitable, reporting a net loss of 4 billion yuan ($581.8 million) in the first quarter of 2020.

What are people saying online?

Huang’s staggering net-worth has triggered mixed feelings among internet users. One user dismissed Pinduoduo as an online platform that “mostly sells counterfeit products.” Several other users echoed this sentiment, saying they never expected the company to be so successful.

Other netizens are impressed by Huang’s wealth and optimistic about the company. “It’s only been five years since Pinduoduo was founded. The company has a bright future ahead,” one user wrote.

Contact editor Marcus Ryder (marcusryder@caixin.com)

Share this article
Open WeChat and scan the QR code