(Yicai Global) Feb. 18 -- Meituan’s shares skidded after the Chinese government announced measures to help the service sector, including putting pressure on delivery platforms to lower the fees they charge to restaurants.

After plunging as much as 17.6 percent this afternoon, reaching a 52-week low of HKD182 (USD23.22), Meituan [HKG: 3690] ended 14.9 percent down at HKD188. 

The National Development and Reform Commission, China’s state planner, and 13 other agencies said they will issue measures to boost growth in the service sector, which has been hard hit by the pandemic. They include guiding online food delivery platforms to lower the fees they charge meal vendors.

The platforms will also be asked to grant temporary preferential policies for catering companies in the areas more affected by the pandemic.

Last year, the NDRC and other government bodies issued a plan to make online food delivery platforms charge more reasonable commissions for small and mid-sized firms, merchants and individuals. 

Food delivery and lifestyle giant Meituan was also fined CNY3.4 billion (USD532 million) last year for abusing its dominant market position. It also was ordered to rectify issues by treating its delivery staff better, among other matters.

The Beijing-based company reported a net loss of nearly CNY10 billion (USD1.56 billion) for the third quarter of 2021.

Editor: Tom Litting