Chinese directive asking on-demand platforms to lower merchant fees triggers sell off in Meituan shares in Hong Kong

  • The new guidelines, published by the National Development and Reform Commission, are aimed at helping the service sector recover from the impact of the pandemic
  • Chinese regulators have taken a tough stance on the country’s tech giants since last year

Food delivery couriers for Meituan stand with insulated bags during a morning briefing in Beijing, April 21, 2021. Photo: Bloomberg

A new Chinese government directive ordering internet platforms to lower the fees they charge restaurants dealt a heavy blow to the shares of Meituan, China’s on-demand delivery giant, as the ruling could shrink the platform’s revenues.

Meituan’s shares plunged 14.9 per cent in Hong Kong on Friday after China’s regulators ordered platforms to lower their charges.

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