Business
Meituan Plunges to Two-Year Low as Denial of Mass Layoff Plans Fails to Stem Selloff
Shares of Meituan fell to their lowest level in two years on Thursday, May 28, 2026, as investor concerns over the company’s cost-cutting measures persisted despite official denials of mass layoff plans.
Denial Fails to Calm Markets
Meituan management issued a statement denying reports of large-scale job cuts, calling them “unfounded rumors.” However, the clarification failed to reverse the selloff, with the stock dropping as much as 8% in intraday trading before closing near session lows. The company has been under pressure to improve profitability amid slowing revenue growth and intensifying competition from rivals such as Ele.me and Douyin.Broader Market Weakness Weighs on Sentiment
The decline extended Meituan’s year-to-date losses to over 30%, making it one of the worst performers in the Hang Seng Index. Analysts pointed to a combination of regulatory uncertainty and macroeconomic headwinds in China as additional factors dragging on the stock. The broader technology sector also faced selling pressure, with the Hang Seng Tech Index falling 1.5% on the day.Market Context
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