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| Shares of Meituan, which is backed by Chinese tech giant Tencent, had surged since it listed in Hong Kong in 2018, vaulting it into the ranks of China's most valuable tech companies. (Photo from series tech) |
[Asia News Communication = Reporter Reakkana] Chinese online giant Meituan’s shares took a nosedive for a second day Tuesday (May 11) after a run of bad headlines that included the CEO posting an ancient poem viewed as a veiled criticism of China's government, AFP reported.
Meituan's Hong Kong-listed shares closed more than five percent lower Tuesday - and down around 12 percent since last week - while investors bet it would become the next big Chinese tech company humbled by government regulators. Beijing has moved aggressively to loosen Big Tech's hold on the daily finances of consumers and - analysts believe - to curb the sector's growing influence on society by using anti-monopoly probes.
Two weeks ago regulators said they had also launched a similar probe of Meituan, a consumer lifestyle super-app through which users order consumer goods and book entertainment, health, and leisure services. The resulting pressure on Meituan shares turned into a rout after CEO Wang Xing last Thursday posted on social media a classic ancient poem about the tyrannical rule of China's first emperor, which was widely viewed as a swipe at authorities. Wang quickly deleted the post and has said it was mistakenly interpreted. The current broad tech clampdown gained pace only after Ma publicly criticized regulators in October, so Wang's post sparked fears of similar retribution against Meituan.
