China’s US$1.5 trillion tech rout not over yet


Tumbling stocks: Delivery couriers for Meituan (right) and Alibaba in Shanghai. Shares of both companies sank as China issued new fee guidelines. — Bloomberg

HONG KONG: Just as a growing number of investors believe China may ease private-sector crackdown to focus on growth, they were reminded on Friday it may be too soon to make that call.

Within less than an hour, food-delivery giant Meituan sank as much as 18% in its worst loss in nearly seven months after China issued new guidelines asking food-delivery platforms to cut fees they charge restaurants. Hong Kong’s Hang Seng Tech Index, which tracks mainland’s biggest tech companies, also tumbled the most in three weeks.

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