The fierce competition in China's food delivery market is sending shockwaves through the stock prices of key players JD.com and Meituan. Investors are increasingly anxious about the potential toll on profitability as these two giants clash.

On Tuesday, JD.com saw its shares plummet by as much as 8.1% in Hong Kong, marking a significant drop. Meanwhile, Meituan suffered a similar fate, with a staggering 7.6% decline, bringing its stock to a seven-month low. Both companies have now positioned themselves as the biggest losers on the Hang Seng Tech Index and the Hang Seng China Enterprises Index.

As the competition heats up, experts warn that the aggressive strategies being employed by both firms could lead to a brutal price war that further pressures margins. With the food delivery market booming, these companies face the challenge of differentiating their services while maintaining profitability. Investors will be keeping a close watch as this market rivalry continues to unfold, potentially reshaping the future of food delivery in China.