Meituan stocks slide with word of late delivery fines being taken off the table

A Meituan food delivery courier waits for customers' orders in Beijing. BLOOMBERG
A Meituan food delivery courier waits for customers' orders in Beijing. BLOOMBERG

Shares in Chinese food delivery giant Meituan (3690) fell on Wednesday, pressured by the news of the company cancelling late delivery penalties as well as increased competition from JD.com’s (9618) newly launched delivery service.

Shares fell as much as 6.1 percent to HK$151.90 and were later traded at HK$155.40, still down 4 percent, with a turnover of HK$4.52 billion.

Meituan has been testing a plan to cancel late delivery penalties in some cities in East China since December and is reportedly set to announce the detailed plan soon, according to mainland media.

STAFF REPORTER