Another Billionaire CEO Steps Down Amid China Tech Crackdown

1st November 2021
Another Billionaire CEO Steps Down Amid China Tech Crackdown

Kuaishou Technology co-founder Su Hua is stepping down as CEO amid China’s ongoing crackdown to rein in the tech sector.

Su is the third Chinese billionaire to reinquish control amid Beijing’s rampant regulations, following Pinduodo’s Colin Huang and Bytedance founder Zhang Yiming.

The 39-year-old entrepreneur will remain chairman of Kuaishou, helping the company focus on long-term strategy and new initiatives. Fellow co-founder Cheng Yixiao, 37, will take over as CEO, and will report to Su. Voting rights for the two remain unchanged.

Cheng was more focused on products rather than the business management. He had met Su in a restaurant over a decade ago and bonded over a passion for creating a product for Chinese internet users.

Cheng created Kuaishou, a video sharing platform that now rivals TikTok in China, in 2011. Su joined the company in 2013 and took over as CEO. Su and Cheng are now worth USD 6.4 billion and USD 5.1 billion respectively.

Kuaishou now has USD 1 billion active users. The company also operates Kwai and Snack video overseas. In February, Kuaishou’s IPO saw its stock surge 150% to highs of HKD 345. Amid Beijing’s tech crack down, Kuaishou’s stock price saw lows of USD 64.5 in August.

Over the past few months, China has cracked down heavily on sectors including education, tech, music and insurance. More than USD 1 trillion is expected to have been lost by those invested in Chinese markets.

Image credit: Bread News

Written by Bread News Team
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