Meituan Dropped 10% After Weak Earnings, Jiaxin International Resources Soared 130%

Li Chen
28 Aug, 2025
Hong Kong

Hong Kong stocks fell on Thursday amid a cloudy earnings outlook and looming trade uncertainty. 

The Hang Seng index decreased 0.7%, but the mainland-focused CSI 300 index gained 0.6% amid sustained buying by domestic state-controlled investment arms. 

The food delivery company, Meituan, reported sharply weaker quarterly results after the company was caught up in a price war. 

The ongoing price war in delivery services and solar panel, electric vehicle, and storage battery markets has put financial pressures on several Chinese companies.

Moreover, the sharp rise in the U.S. import duties has added to uncertainty and volatility in sales, leading to widespread disruptions in operations. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.7% to 25,035.78, and the mainland-focused CSI 300 index advanced 0.6% to 4,416.20. 

Meituan dropped 11% to HK $103.10, and the food delivery company reported a plunge in earnings in the second quarter. 

Revenue in the quarter increased 12% to 91.8 billion yuan from 82.3 billion yuan, and net income dropped 97% to 356.3 billion yuan (about $51 million) from 11.4 billion yuan a year ago. 

The fierce competition in the delivery services has forced the company to lower its prices, matching the price cuts by the rivals JD.com and Alibaba Group. 

Delivery services revenue advanced 2.8%, commissions increased 16%, and online marketing services rose 10.4%, driving the overall revenue higher by 11.7%.

Electric vehicle markets traded down ahead of earnings on the worry that the ongoing price war could crimp the margins for the leading players. 

Li Auto Inc. decreased 3.8% to HK $87.90, BYD fell 3.3% to HK $111.30, and Xpeng Inc. fell 8.7% to HK $84.45. 

Trip.com Group Ltd. advanced 7.4% to HK $550.50, and the online travel booking platform operator reported a 26% increase in net income in the second quarter to 4.8 billion yuan. 

Cambricon Technologies Corp. edged up 6.1% to ¥1,457.0 and extended gains for the second day following a surge in revenue. 

Overnight, the AI leader Nvidia reported a sharp jump in revenue and earnings, but the advanced chipmaker said it lost about $4 billion in revenue because of the U.S. and China trade restrictions. 

Jiaxin International Resources Investment soared more than 130% to HK $25.440, and the tungsten mining company completed its initial public offering. 

The mining company priced its offering at HK $10.92 per share and raised gross proceeds of HK $1.2 billion through the sale of 109.8 million shares. 

The company, with exclusive tungsten mining interests in the Almaty region of Kazakhstan, started trading on the Astana International Exchange on Thursday.