Chinese food delivery giants surge
Hong Kong-listed shares of delivery platform Meituan surged on Wednesday after Chinese state media and the regulator urged the industry to end a bleeding price war. Meituan surged as much as 12.6% to a high of HK$89 a share in afternoon trading.
Rival Alibaba and JD.com both jumped more than 3%. State media Economic Daily published an opinion piece on Wednesday, calling an end to the bruising price war among food delivery platforms.
State Administration for Market Regulation later reposts the piece to its official website in a sign of regulator endorsement.
"The entire industry has fallen into a vicious cycle of losing money in an attempt to grab market share, ultimately dragging down the broader trend of consumption recovery," the report said.
Rival Alibaba and JD.com both jumped more than 3%. State media Economic Daily published an opinion piece on Wednesday, calling an end to the bruising price war among food delivery platforms.
State Administration for Market Regulation later reposts the piece to its official website in a sign of regulator endorsement.
"The entire industry has fallen into a vicious cycle of losing money in an attempt to grab market share, ultimately dragging down the broader trend of consumption recovery," the report said.
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