Consumers use the Pinduoduo app in Changzhou, East China's Jiangsu Province in November 2018. Photo: VCG

 Huang Zheng, founder of Chinese online shopping giant Pinduoduo, stepped down as chief executive on Wednesday and is succeeded by Chen Lei, co-founder of the company. 

"I will step down as CEO of the company and spend more time formulating the company's medium and long-term strategies and corporate structure with relevant teams and the board," Huang said in a letter to employees on Wednesday.

Huang also said that 113.5 million shares, 2.4 percent of the company's total, would be donated in a show of commitment to formally establishing the "Starry Night" charitable trust, which aims to promote social responsibility and scientific research as promised in the company's initial public offering in 2018.

Huang said he would transfer 371 million shares under his name, accounting for 7.74 percent of all shares, to the Pinduoduo Partnership to support long-term scientific research and social welfare.

Huang now owns 29.4 percent of all company shares, down from 43.3 percent, according to the latest filing of the US Securities and Exchange Commission (SEC). His personal stake in the company was reduced by roughly $14 billion based on Pinduoduo's current share price.

After the reduction Huang still retains strong control over the company with 80.7 percent voting power, down from 88.4%.

On June 22, Huang surpassed Jack Ma, founder of Alibaba Group, as China's second-richest man with a $45.4 billion net worth, according to the Forbes Real-Time Billionaire Index. 

Founded in 2015, Pinduoduo is growing at lightning speed. In May, the company overtookrival JD.com to become China's secondmost valuable online retailer behind Alibaba Group with a market value of over $100 billion.