Why is Meituan stock sliding today?

Meituan's stock price plummeted 4.7% to HK$71.2 on Thursday as Hong Kong's technology market suffered a significant decline. The Hang Seng Tech Index witnessed one of its sharpest single-day drops in months, falling over 4% intraday to its lowest point since September 2024, dragging the food-delivery and local-services company into a loss alongside its competitors.

The decline was also influenced by a sell-off in e-commerce rivals Alibaba and JD.com, who faced pressure from China's market regulator demanding stricter quality controls and enhanced customer security measures. The sell-off extended to the broader technology sector, with investors expressing growing concerns about the returns on substantial artificial intelligence investments following mixed earnings from leading U.S. tech firms overnight.

The Hang Seng Index suffered a near 3% drop, reaching a near four-month low, as the market reacted to the sell-off.