HONG KONG, March 25 (Reuters) – 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 sharein afternoon trading * Rival Alibaba and JD.com both jumped […]
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Chinese food delivery giants surge as regulator, state media call end to price war
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HONG KONG, March 25 (Reuters) – 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 sharein afternoon trading * Rival Alibaba and JD.com both jumped more than 3%. * State media Economic Daily published an opinion piece onWednesday, calling an end to the bruising price war among fooddelivery platforms * State Administration for Market Regulation later repoststhe piece to its official website in a sign of regulatorendorsement. * “The entire industry has fallen into a vicious cycle oflosing money in an attempt to grab market share, ultimatelydragging down the broader trend of consumption recovery,” thereport said.
(Reporting by Jiaxing Li in Hong Kong and Li Gu in Shanghai; Editing by Janane Venkatraman)