Meituan Shares Get Butchered As China Introduces Tougher Laws

Meituan 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.