China’s state-run Economic Daily newspaper said on Wednesday the market had overreacted to the government’s guidance that food delivery platforms should lower service fees.
The policy was not intended to target the platform economy as the government recognises its crucial role in the economy, the Economic Daily’s commentary said.
China’s state planner, the National Development and Reform Commission (NDRC), issued a set of rules on Friday to promote a faster recovery from the pandemic in the services sector.
They included guidance for online food delivery platforms to reduce service fees to help to lower operating costs for catering businesses.
The proposed policy wiped as much as $26 billion off the market capitalisation of Meituan, China’s dominant food delivery platform.
But on Wednesday Meituan’s shares jumped more than 7% in reaction to the Economic Daily’s commentary.
The policy guidance aimed at calling on companies to shoulder more social responsibility but commission rates would be ultimately decided by the market, the commentary added.
China’s technology sector has been trying to weather a year-long regulatory crackdown, which has wiped billions of dollars off the market value of some of China’s biggest corporate giants.
- Reuters with additional editing by Sean O’Meara