Meituan Shares Drop for 10th Session on Consumer Group Criticism

Stock has slumped by almost 12% in past two sessions
Consumer group blasts it for issues hurting consumer rights

WATCH: Meituan’s stock plunged to a 7-month low on Monday after its CEO shared and then deleted a post on social media seen as critical of Beijing.(Source: Bloomberg)

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By Bloomberg News

May 11, 2021 at 2:37 AM UTC

Updated on

May 11, 2021 at 9:59 AM UTC

This article is for subscribers only.

Meituan shares fell for the 10th straight session after an influential consumer group voiced criticism over issues that hurt consumer rights, fueling concerns the Chinese tech firm is facing heightened regulatory scrutiny.

The Shanghai Consumer Council, a consumer rights advocacy group, blasted the food delivery giant for its practices including refunding problems and misleading content on its mobile app in a statement released late Monday. The company has vowed to submit a rectification report in the near term. Shares fell 5.3% Tuesday to HK$249, taking the slump so far this week to nearly 12%.