Meituan Shares Rise as China Urges End to Price War
Meituan shares rose as much as 12.6% after Chinese regulators urged an end to food delivery price wars. The move aims to stop losses and help consumption recovery.
Shares of major food delivery platforms in Hong Kong experienced a significant rally on Wednesday following calls from China state media and market regulators to conclude an aggressive industry-wide price war. The market response was led by Meituan, which saw its stock price climb as much as 12.6% to reach a high of HK$89 during afternoon trading sessions.
The surge extended to other major technology players, with Alibaba Group Holding Limited and JD.com, Inc. both recording gains of more than 3%. This upward momentum followed an opinion piece published by the Economic Daily, a state-run media outlet, which advocated for the cessation of destructive pricing strategies among food delivery services. The sentiment was further bolstered when the State Administration for Market Regulation (SAMR) reposted the article on its official website, signaling formal regulatory endorsement for the initiative.
