(Bloomberg) -- Meituan plummeted 15%, its worst on record, after China issued regulations to tighten oversight of the country’s massive food delivery sector.
The government posted a notice Monday asking meal delivery operators to respect the rights of delivery staff. Online food platforms must ensure that delivery workers earn at least the local minimum income, according to a guideline released by seven government agencies including the State Administration for Market Regulation.
Tencent (HK:0700) Holdings (OTC:TCEHY) Ltd.-backed Meituan, the industry’s largest operator alongside Alibaba (NYSE:BABA) Group Holding Ltd., is already grappling with an investigation into alleged monopolistic behavior.
The regulations, which echo previous warnings to the industry, comes days after China unveiled a broad set of reforms for private and online education companies, seeking to decrease workloads for students and overhaul a sector it says has been “hijacked by capital.” The sweeping crackdown on one of the country’s fastest-growing and best-funded sectors sent a chill through tech investors, who sold off Chinese internet stocks in Hong Kong Monday. Meituan’s stock has now tumbled almost 50% from its peak in February.
Read more: China Crackdown Makes Hong Kong Index World’s Biggest Tech Loser
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