China tech stocks surge despite $534 million antitrust fine slapped on food delivery giant Meituan

GUANGZHOU, China — Meituan shares surged over 8% on Monday regardless of the meals supply big being slapped with a $500 million antitrust fantastic, because the penalty was not as giant as anticipated.

“The Meituan fantastic was really decrease than anticipated,” Ken Wong, Asia fairness portfolio specialist at Eastspring Investments, informed CNBC’s “Road Indicators Asia” on Monday.

On Friday, China’s State Administration for Market Regulation (SAMR) said Meituan abused its dominant position within the nation’s on-line meals supply market. The market regulator mentioned Meituan pushed retailers to signal unique cooperation agreements with them and carried out punitive measures for people who did not.

The SAMR slapped a 3.44 billion yuan ($534.3 million) fantastic on Meituan and ordered it to hold out rectification measures, concluding a months-long probe.

Meituan closed up greater than 8% in Hong Kong commerce, whereas different China know-how shares listed in Hong Kong had been additionally broadly increased. Tencent ended the day increased by 2.9% whereas Alibaba jumped practically 8%.

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“General the truth that Chinese language fairness markets are undoubtedly … buying and selling rather more engaging relative to most different nations right here in Asia,” Eastspring Investments’ Wong mentioned.

“Chinese language markets … are buying and selling at considerably decrease valuation ranges,” he mentioned. “We’re seeing buyers backside fishing a bit.”

Wong mentioned that any optimistic sentiment popping out of China towards the know-how sector ought to result in “extra shopping for” of the associated shares.

China has been growing scrutiny on its home know-how firms over the previous yr, wiping billions of dollars of value off tech stocks.

Regulators have targeted on tightening rules around unfair competition and data protection however have even gone additional than different jurisdictions by turning their consideration to regulating algorithms.

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