Three ministries and commissions regulate Internet platforms. Meituan plunged more than 8% intraday on Tuesday, with its shares hitting a new low for the year.
This is the third consecutive trading day that Meituan’s share price has been lower, and the second consecutive day that it has fallen more than 5%. Counting the previous day’s decline, Meituan Dianping has fallen more than 12% in two trading days, the market value evaporated 224 billion Hong Kong dollars.
Meituan plunged more than 8% to set a new low for the year
April 13 opening, the Hang Seng Index opened 0.37% higher, once up more than 1% during the day, after the afternoon gains narrowed. By the close, the Hang Seng Index rose 0.15% to 28,497.25 points.
Sporting goods stocks rose sharply, Hong Kong retail stocks rose, however, the Hang Seng Technology Index fell 1.6%, Meituan fell after lunch to expand, the lowest had seen 274.2 Hong Kong dollars, down 8.04%, refreshing this year’s low.
Meituan closed at HK$276, down nearly 7.45%, with a full-day turnover of HK$12.25 billion.
Compared with the yearly high of HK$460 in February, Meituan shares are now down 40%, or 6.31% for the year, with the latest total market value of HK$1,625.2 billion and turnover of HK$12.25 billion.
With the listed company’s share price plunging, Meituan CEO Wang Xing’s personal value has also shrunk. Real-time data from the Forbes Rich List shows that Wang Xing’s value decreased by $2.8 billion on April 13, equivalent to RMB 13.8 billion.
Market value plunged HK$224 billion in two days
This is the third consecutive trading day that Meituan’s share price has gone lower, and the second day in a row that its share price has plunged.
On April 12, Meituan fell 5.03%. If calculated based on the closing price of HK$314 on April 9, that is, last Friday, as of today’s close Meituan shares fell 12.1% in two trading days, while the market value shrunk 224 billion Hong Kong dollars (about 1887 yuan).
If calculated based on the closing price of HK$320.8 on April 8, after three trading days of decline, Meituan shares fell nearly 14%, the market value evaporated HK$264 billion, or about RMB 222.4 billion.
Three ministries regulate Internet platform monopoly
On the news, according to the General Administration of Market Regulation, today, the General Administration of Market Regulation, together with the Central Internet Information Office and the General Administration of Taxation, held an administrative guidance meeting for Internet platform enterprises.
The meeting pointed out that the overall trend of China’s platform economy is positive. But in the rapid development of risks and hidden dangers are gradually accumulated, the harm can not be ignored, according to the law can not be delayed.
Forced implementation of the “two choices”, abuse of market dominance, the implementation of “pinch the tip of the merger”, burning money to seize the “community group purchase” market, the implementation of “big The problems of “data killing”, indifference to counterfeit and shoddy products, information leakage, and tax-related illegal acts must be seriously rectified.
Undoubtedly, Meituan is one of the giants that mainly attack community group buying.
According to reports, after the Spring Festival, each community group buying giant has established its goals for 2021: Meituan Yousei has locked its annual GMV at 200 billion and will hit 50-60 million/day of single volume.
It is understood that in 2020 Meituan invested roughly 10 billion yuan in the community group buying business, while Jindo invested 6-7 billion, this year Meituan’s investment efforts may reach 20 billion, Jindo will also continue to increase investment efforts.
“In the fourth quarter, the company’s new business operating loss was 6 billion, half of which came from Meituan Yousei, and other businesses with expanding operating losses include Meituan Taxi, Meituan Buy Food, and Meituan Express Donkey, a merchant feeding platform.”
Despite the new business being in the red, Wang Xing said during Meituan’s full-year earnings call, “This will remain Meituan’s future focus and the company will continue to invest in this area.” Wang Xing said during Meituan’s full-year earnings call.
The meeting also pointed out that the forced implementation of the “two choices” problem is particularly prominent, is a prominent reflection of the capricious and disorderly expansion of capital in the field of platform economy, is a blatant trampling and destruction of the order of market competition. Forced implementation of the “two choices” behavior to limit market competition, curb innovation and development, damage the interests of operators and consumers in the platform, the harm is great, and must be firmly eradicated.
Requirements “give full play to Ali case warning role”
In addition to the meeting held on the 13th mentioned that the requirement to give full play to the Ali case warning role.
It is understood that on April 10, the General Administration of Market Supervision in accordance with the law on Alibaba to implement the “two choose one” monopoly behavior to make administrative penalties: impose its 2019 sales of 4% of 18.228 billion yuan fine. Subsequently, Alibaba said in its official blog, this punishment sincerely accept, resolutely obey, and apologize to consumers.
The meeting also required that the platform companies to a comprehensive self-examination within a month, a thorough correction, and to the community to disclose the “commitment to operate in accordance with the law,” to accept social supervision.
Market regulators will organize a follow-up inspection of the platform rectification, rectification period, and then found that the platform companies forced to implement the “two choices” and other illegal behavior, all according to the law from the heavy and strict punishment.
The industry generally believes that the share price of the United States group today fell to expand, and this news related. It is understood that the 34 Internet platform enterprise representatives, including Meituan, Tencent, as well as Beijing, Shanghai, Jiangsu, Zhejiang, Guangdong, Shenzhen and other local market supervision bureau responsible for attending the meeting.
“It is expected that the anti-monopoly punishment by the regulator will not cause significant negative impact.” Zhang Yong, chairman of the board and CEO of Alibaba, said in a conference call on the morning of April 12.
The capital market also reflected in line with Zhang Yong’s judgment, and on the same day, Alibaba’s Hong Kong shares surged, up as much as 8.99%, and closed up 6.51%. Subsequently, Alibaba shares in the United States also rose sharply, closing up 9.35%.
CCASS shows that the large hand transfer of positions involving more than 80 billion
Sequoia may have reduced its holdings?
Since the “big data killing” chaos was rectified, Meituan, Tencent shares recently but less than Alibaba, and more attention is paid to the Central Clearing and Settlement System (CCASS) data shows that Meituan shareholders large hands transfer positions involving more than 80 billion.
This news is also to some extent negative for Meituan’s share price.
CCASS shows that an investor injected 5.82% or 300 million shares into CCASS last Thursday, and during the same day, Goldman Sachs Goldman Sachs held / held on behalf of its clients to increase 301 million shares in a single day, indicating that the relevant shares have a high chance of transferring positions by a single shareholder.
With the latest closing price of HK$276 of Meituan, the amount of shares involved amounted to HK$83.1 billion.
More than 300 million shares equivalent to 5.85% of the total share capital, the industry said the main probability for shareholders to transfer positions action. There is also news that Meituan is deploying a share placement, it is possible that Goldman Sachs is preparing to deploy future sales / subsistence for preparation.
According to Meituan’s 2020 financial report, Meituan’s existing shareholders only founder Wang Xing, Tencent and Sequoia Capital hold more than 300 million shares, excluding Wang Xing who holds “same share different rights” A class shares, Tencent and Sequoia Capital hold about 1 billion shares and 460 million B class shares respectively.
In other words, holding 5% or 300 million shares of Meituan shareholders, there are only three potential sellers. One is the founder Wang Xing, the second is Tencent, the third is Sequoia Capital (Sequoia Capital), respectively, holding about 11%, 20% and 8% of the shares.
The industry pointed out that, as Wang Xing shares are Class A shares (the same share with different rights, with nearly half of the voting rights), so the incentive to sell is relatively low.
Tencent and Sequoia Capital are early investors, holding most of the shares of Meituan is a class B shares, the current price of the book returns are often tens of times. The current price is also more than 3 times higher than the prospectus price, estimated only at the 2018 listing price of $69.
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