Meituan Troubles Are Piling Up Even After 40% Slump
- Losses coincide with wider pessimism toward Chinese equities
- Company may have to sacrifice its margins to maintain its lead
Meituan’s shares have fallen almost 40% in Hong Kong since the start of the year, underperforming the Hang Seng Tech Index which is down about 7%.
Source: Bloomberg
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The stock of China’s biggest food delivery platform has almost halved since a January peak and if traders are right, the worst isn’t over.
The volatility skew on Meituan, a gauge of market positioning and sentiment, is at its most bearish since February, signaling that market players are bracing for more declines. China’s economic growth is flagging and competition in the business is heating up — all of which spells trouble for the e-commerce company.