China wipes $26 billion off Meituan's value with new fee policy

Online food delivery platforms were also told to give preferential fees to restaurants in regions hit by the pandemic

Meituan tumbled the most in nearly seven months after China issued new guidelines asking for food delivery platforms to cut fees, showing that investor angst over the nation’s tech giants remains high.

Shares of the food delivery giant sank 15%, wiping out $26 billion in its market value, after the government asked platforms to cut charges for restaurants to reduce business costs. The move caused a broad selloff in tech shares, with the Hang Seng Tech Index closing 3.2% lower while the benchmark Hang Seng Index dropped 1.9%.

Online food delivery platforms were also told to give preferential fees to restaurants in