HK Stock Market Move | MEITUAN-W(03690) rose over 3% in the afternoon, accumulating a total increase of over 23% after the performance evaluation. Standard & Poor's and Fitch have recently both raised the company's credit rating.

Meituan-W (03690) rose more than 3% in the afternoon, with a cumulative increase of over 23% after its performance announcement. As of the time of writing, it rose 3.09% to HK$126.8, with a trading volume of HK$1.788 billion. On the news front, credit rating agency Standard & Poor's has upgraded Meituan's long-term issuer credit rating to "BBB+", and also raised the company's unsecured notes' issuance rating accordingly, with a "stable" outlook. Standard & Poor's stated that despite weak macroeconomic conditions, Meituan's strong momentum in its core local business is expected to continue; while the average spending per order has slightly decreased, transaction volume is still growing at a healthy pace. Standard & Poor's pointed out that Meituan has been executing its loss reduction plan faster than expected, and has been quicker in reducing rewards for on-demand delivery. Fitch Ratings recently also upgraded Meituan's long-term issuer rating to "BBB" with a "positive" outlook. Fitch noted that this rating upgrade reflects Meituan's significant improvement in profitability and strong free cash flow, attributed to successful strategic execution and easing competition in its in-store business. Fitch expects that Meituan's platform scalability, continuous improvement of its core local business penetration rate, and strategic transition from subsidy-driven investments to return-driven investments will support stable EBITDA and FCF generation in the medium term.