China tech stocks are red-hot this year — but 2 are plunging as the battle for food delivery dominance intensifies
Share prices of Meituan and JD.com are under pressure, highlighting the fierce competition in China's food delivery market.
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- Meituan and JD.com stocks fell on Tuesday amid fierce food delivery competition in China.
- JD.com accused a rival of banning riders from accepting its orders, intensifying tensions.
- Other Chinese tech stocks like Alibaba and Tencent have seen big gains this year.
Intensifying rivalry between two of China's tech giants in the food delivery business has battered their company stocks this year.
The share price of Meituan, China's top food delivery app, plunged as much as 8.1 % on Tuesday. The stock is down over 14% so far this year.
Hong Kong-listed JD.com, which waded into the food delivery business in February, tanked as much as 8.1%. The company's shares are down 4% so far this year.
Both stocks have underperformed the Hang Seng Tech Index and Hang Seng China Enterprises Index, which are both up about 10% so far this year.
The sharp losses in the two companies' share prices came after JD.com said on its Weixin social media account on Monday that a competing platform had told riders that they would be barred if they accepted orders from JD. It did not name the competing platform.
On the same day, Meituan wrote in its Weixin social media account that it doesn't restrict riders from working for multiple platforms.
While Meituan and JD.com's losses highlight the fierce competition in China's delivery market, the sharp declines are particularly stark in the context of gains in China's Big Tech stocks this year. These companies have been fueled by the hype from DeepSeek in late January.
Some of China's high-profile tech companies have made strong gains this year, despite broader tariff-induced market uncertainty.
The tech jump contrasts against sharp losses over the last few years following Beijing's tech crackdown.
Shares of Alibaba closed 1.2% higher on Tuesday and are 34% higher year to date.
Tencent's stock ended 0.5% higher on Tuesday and is 10.4% higher year-to-date.
Xiaomi — known for smartphones, home appliances, and now EVs — closed 5.8% higher on Tuesday and is up 29% so far this year.
