Meituan fell as much as 15% at one point, and a proposal to protect the rights of food delivery workers landed

Spark Global Limited reports:

In late Hong Kong trading on July 26, Meituan’s fall extended to as much as 15%, its biggest ever.

 

Today, the State Administration for Market Regulation and other seven departments jointly issued “on the implementation of online catering platform responsibility to effectively safeguard the rights and interests of takeaway food delivery workers”. The opinion makes requirements from two aspects:

In terms of ensuring labor income, the platform is required to establish an income distribution mechanism that matches the work task and labor intensity to ensure that the normal income of food delivery workers is not lower than the local minimum wage standard. The “strictest algorithm” shall not be taken as the assessment requirement, and the assessment factors such as order quantity, on-time rate and online rate shall be reasonably determined by means of “algorithm in the middle” and so on, and the delivery time shall be appropriately relaxed.

Improve the social security, urge the platform and third-party cooperative units to participate in social insurance for the food delivery deliveryman who has established labor relations, support other food delivery deliveryman to participate in social insurance, and participate in the pilot of occupational injury protection for flexible employment personnel on the platform in accordance with national regulations. We will encourage exploration of diversified plans to provide commercial insurance and raise the level of multi-level insurance coverage.

Didi has been under scrutiny by seven Chinese authorities. Shortly after its U.S. listing, the company was investigated for illegal collection and use of personal information.

After didi’s accident, the outside world on the rise of meituan rumors swirl. In recent years, Meituan has been expanding its own business, gradually extending its hand to bike-sharing, community group buying, Meituan hotels, cat’s Eye movies, etc. Among them, Meituan’s market share in community group buying has reached the first place.

Meituan may have long wanted to enter the ride-hailing market, but the early entrant is Didi, which, through subsidies and other means, accounted for 90 per cent of 562 million users last year.

In mid-July, Meituan launched its wechat mini program “Meituan Taxi”. The mini program changed its name at the end of June, from “Meituan taxi marketing number” to “Meituan Taxi”. The Meituan Taxi-hailing mini program, which is not unlike the Meituan taxi-hailing App, offers a smart checkbox service and 23 models.

All three major A-share indexes were hit hard by regulatory measures in several countries, with the Growth Enterprise Market down more than 5% at one point. Hong Kong shares also suffered, with the Hang Seng Technology Index closing down 6.57%, its biggest drop of the day. The Hang Seng index fell more than 1,000 points on the day, with Meituan, Alibaba-SW and Tencent Holdings contributing the top three declines.

The Hang Seng Index Company today also launched the Hang Seng New Consumer Index and the Hang Seng Shanghai, Shenzhen and Hong Kong New Consumer Index. The new consumer Index includes alibaba, Meituan and other companies.

Spark Global Limited reports:

The Hang Seng New Consumer Index covers Chinese companies listed in Hong Kong; The Hang Seng Shanghai-Hong Kong Stock Connect consumer Index is A cross-market index, with A range of stocks from China a-share listed companies and Hong Kong stock Connect components. Both indices have a base value of 3,000.

Mr Wong Wai Hung, Chairman and Index Director of Hang Seng Index, said: “The launch of the two indices will provide investors with reference investment options, both onshore and offshore, to capture the emerging opportunities in China’s consumption upgrading trend and help them make informed decisions in cross-border asset allocation.

Both indexes are composed of the 50 largest stocks by average market capitalization over the past 12 months and are subject to semiannual revisions. At the same time, they are all calculated by the floating market value weighting method, and the upper limit of the proportion of individual constituent stocks is 10%.

According to the official website of hang Seng, hang Seng new consumption index of the top ten weighted stocks include: Alibaba (09988) accounted for 13.80%, Meituan (03690) accounted for 8.87%, chuang Co., LTD. (00669) accounted for 5.02%, etc. The top 10 heavyweight stocks in the Hang Seng New Shanghai-Shenzhent-Hong Kong Consumer Index include Meituan, Kweichow Moutai and Wuliangye.