- Briefing Your roundup of Asian tech and startup news that matter
Deepti Sri · · 1 min readReport: Shares of Meituan, Tencent fall ahead of quarterly results
“Shares of China’s big tech companies continued to slump on Tuesday, ahead of their earnings report for the quarter ended March, as Beijing’s increased antitrust scrutiny added to investor concerns over high valuations and tightening monetary policy in the world’s second-largest economy,” South China Morning Post reported.
Details:
- Shares of Chinese food delivery giant Meituan took the biggest hit, falling for 10 consecutive days to end at HK$249 (US$32.05).
- Tencent and Alibaba’s shares also lost 1.76% and 2.57%, respectively, on Tuesday amid the country’s heightening regulatory pressure on tech companies.
Context:
- The slump comes after China kicked off an investigation into Meituan for allegedly breaching antitrust laws, which includes forcing exclusivity agreements.
- The country is also reportedly preparing a substantial fine for Tencent as part of its clampdown. However, the penalty is expected to be less than the record US$2.75 billion fine imposed on Alibaba last month.
Currency converted from HK Dollar to US dollar: US$1 = HK$7.77.
Editing by Miguel Cordon and Jaclyn Tiu
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
