Meituan confirmed in a filing Friday founder Wang Xing has donated $2.3 billion worth of his stake in the company to his philanthropic foundation.
The donation is the latest made by an internet billionaire as the country accelerates its crackdown on big technology companies.
The company said its CEO transferred 57.3 million shares to his foundation. Based on the company's Thursday closing price, the donation amounts to about $2.27 billion.
The stock fell by about 3% in early Friday trading. The donation represents about a tenth of Wang's entire stake in the company.
Meituan, along with other technology companies such as Alibaba and Tencent, is currently facing increased scrutiny from China's antitrust watchdog. Regulators are attempting to curb the growing influence of the conglomerates as part of a broader campaign to ensure fair business practices nationwide.
In April, Tencent founder Pony Man committed to spending around $7.7 billion to help address societal issues such as poverty and inequality.
According to Meituan, Wang's donation will be used toward education and science programs in accordance with the country's push to speed up technological innovation. The company said Wang's decision was solely philanthropic in nature.
"The changes regarding Wang Xing's interest in shares of Meituan represent a personal asset allocation decision that was made out of philanthropic considerations. This decision does not reflect any changes in his dedication to Meituan's business," the company said in a separate statement.
Meituan was placed under investigation by regulators for alleged antitrust violations in April. The probe focused on the company's core operations and alleged mistreatment of delivery drivers.
During its latest earnings call, where the company released better-than-expected results, Wang pledged to address all government concerns and to work with regulators to improve its compliance standards. Wang also promised to provide insurance to all of its delivery drivers and to reform its commission scheme.
Analysts have remained optimistic on the prospects of China's homegrown technology companies, with most expecting the crackdown to wind down in the coming months. Analysts expect the probe into Meituan to proceed much more quickly when compared to the probe on Jack Ma's business empire, which took around four months.
