- Meituan (OTC:MPNGY) shares shed ~15% after China issued new guidelines asking food delivery platforms to cut restaurant fees to reduce business costs, Bloomberg reports.
- Online food delivery platforms will have to offer preferential fees to restaurants in regions hit by the pandemic, as per the National Development and Reform Commission.
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- Investors remain wary about China’s once-mighty tech sector after Beijing’s yearlong regulatory crackdown wiped off ~$1.5 trillion in market value in the Hang Seng Tech index.
- “The knee-jerk reaction shows market fears over China’s regulatory tightening haven’t been completely eradicated,” says Daniel So, a strategist at CMB International Securities. “Overall, the market is expecting more granular regulatory measures to be rolled out this year even though the worst of crackdowns should be over.”
- Price Action: MPNGY shares closed lower by 2.06% at $55.75 on Thursday and fell 14.86% on the Hong Kong exchange on Friday.
