Meituan Hedges Get Costly as Price Wars Make Investors Cautious

Meituan’s stock price jump on Wednesday came with a rise in protection costs, highlighting investor unease ahead of earnings that may show a big hit from stiff price competition.

Shares of the food-delivery giant soared 14%, their biggest daily jump since October 2024, after China’s market regulator pledged to intensify efforts against unfair pricing. Meanwhile, option prices for the stock climbed to a one-year high relative to those on the Hang Seng Tech Index, according to one-month implied volatility data.