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China Wipes $26 Billion Off Meituan’s Value With New Fee Policy

  • Hang Seng Tech Index falls 3.2%, Hang Seng Index drops 1.9%
  • China asks for preferential fees for restaurants hit by Covid
Food delivery couriers for Meituan in Beijing.

Food delivery couriers for Meituan in Beijing.

Photographer: Yan Cong/Bloomberg
Updated on

Meituan tumbled the most in nearly seven months after China issued new guidelines asking for food delivery platforms to cut fees, showing that investor angst over the nation’s tech giants remains high. 

Shares of the food delivery giant sank 15%, wiping out $26 billion in its market value, after the government asked platforms to cut charges for restaurants to reduce business costs. The move caused a broad selloff in tech shares, with the Hang Seng Tech Index closing 3.2% lower while the benchmark Hang Seng Index dropped 1.9%.