Share price of Meituan – China’s largest food delivery company – plunged 7.1% to a 7-month low after CEO Wang Xing posted an ancient poem on social media.
According to the Bloomberg , after the trading session on May 10, the market capitalization of China’s number one food delivery company lost 16 billion USD. The plunge came after CEO Wang Xing posted a Tang Dynasty poem on Fanfou. Many people believe that the 42-year-old billionaire implied criticism of the management apparatus of the Chinese government.
A poem by a poet of the Tang Dynasty, about the phenomenon of burning books in the Qin Dynasty. “What CEO Wang posted is an anti-government poem. It shows that he is under a lot of pressure because of the investigations,” said Hao Hong, an analyst at Bocom International in Hong Kong. CEO Wang deleted the post on May 9 and denied the above rumor. He claimed to only use the verse to refer to the company’s competitors. A spokesperson for Meituan made a similar comment. Mr. Wang Xing, CEO of Meituan. Photo: China Daily. In October 2020, billionaire Jack Ma publicly criticized the Chinese banking system. As a result, Jack Ma’s startup Ant Group was forced to stop its $35 billion listing, Alibaba was investigated and fined $2.8 billion for violating antitrust laws. “Many people think that the poem posted by Wang Xing is a criticism similar to what Jack Ma said. This is not the time for Chinese businessmen to raise their voices.” Bloomberg quoted Kerry Goh, Investment Director of Kamet Capital Partners as saying. In recent years, the Chinese government has tightened supervision of technology companies. The Hang Seng Technology Index is down a record 30% from its peak in February. Meituan is also the subject of investigation by Chinese authorities for monopolistic behavior. Meituan is accused of forcing merchants to sign exclusive business contracts on its platform. On May 10, the Shanghai Consumer Council criticized Meituan for infringing on the rights of consumers.
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