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Chinese Recruit-App Founder Sells $110 Million of Shares to Meet New Offshore Tax Rules
By Drooid · · How we work
Share Sale Triggered by New Offshore Tax Rules
Peng Zhao, founder of Kanzhun Ltd., the operator of the Boss Zhipin recruitment app, disposed of HK$863 million (approximately $110 million) of company stock in a block trade on Hong Kong’s market. The sale, executed through the British Virgin Islands-registered entity Techwolf Ltd., was made in response to China’s recently announced rules that will tax offshore trusts owned by Chinese citizens. Sources familiar with the matter said Zhao acted to settle the tax liability before a grace period ends next month.
Regulatory Background
In July, Chinese authorities announced that offshore trusts established by nationals will become subject to taxation, closing a long-standing loophole used for asset protection and succession planning. The policy has prompted a “race” among wealthy individuals to regularize offshore holdings before the upcoming deadline, according to the same sources.
Deal Details and Company Metrics
Zhao sold 15.2 million Kanzhun shares at HK$56.90 each, a 2.7 % discount to the stock’s prior close. The transaction caused Kanzhun’s share price to fall as much as 4.2 % in Hong Kong trading. Earlier in the month, Zhao had sold roughly $6 million of additional Kanzhun stock at average market prices. Goldman Sachs Group Inc. arranged the block trade. Kanzhun, founded in 2013, reported second-quarter revenue of 2.4 billion yuan ($358 million), a 14 % increase year-over-year, and logged about 70 million average monthly active users during the same period.
Implications for Wealth Management in China
Zhao’s sale marks one of the first high-profile examples of Chinese entrepreneurs liquidating offshore-held equity to comply with the new tax regime. The move follows a $351 million share sale by the founding family of Haidilao International Holding Ltd. earlier this month, indicating that the policy is prompting a broader shift among China’s affluent class toward repatriating or restructuring offshore assets ahead of the impending deadline.