(Yicai Global) Nov. 30 -- Meitu's shares fell for a second day, reaching their lowest level since listing, after claims surfaced that the Chinese smartphone and selfie app maker has been overdoing the collection of personal data on more than 400 million users.
Meitu's Hong Kong-traded stock ended 4 percent lower at HKD2.99 (38 US cents), the lowest closing price since it went public in December 2016, after plunging more than 10 percent today and almost 16 percent yesterday. The shares have lost three-quarters of their value since a January high of HKD12.94.
The recent slump comes after the China Consumers Association, the nation's consumer watchdog, published a report yesterday on the privacy policies of 100 Chinese apps. It accused the Xiamen-based company of gathering up an excessive amount of user information. While the vast majority of apps were found to be over-zealous data collectors, MeituPic's practices were found to be excessive because of the sensitive nature of the financial and biological material scooped up.
Because of a decline in mobile phone sales, Meitu on Nov. 19 forecast a net loss for this year of between CNY950 million (USD136.8 million) and CNY1.2 billion, far outstripping last year's CNY197 million.
Editor: William Clegg