Investing.com-- Hong Kong-listed shares of JD.com (HK: 9618 ) dropped on Tuesday after Meituan (HK: 3690 ) CEO Wang Xing higlighted intensifying competition in China’s instant retail market.

The stock declined as much as 6.6% in early trading, reflecting investor concerns over escalating rivalry between the two tech giants.

As of 02:01 GMT, JD.com shares were trading 3.6% lower at HK$125.

Meituan’s shares also experienced volatility, dropping up to 5% intraday before recovering slightly. Meituan on Monday reported a bigger-than-expected 18.1% rise in quarterly revenue.

Wang said in the earnings call that the company is fully committed to doing whatever is necessary to come out ahead, while cautioning that the fierce competition could lead to short-term financial fluctuations.

The heightened competition comes as JD.com aggressively expands its food delivery service, JD Takeaway, challenging Meituan’s market dominance. JD.com has invested heavily in subsidies and recruitment, aiming to capture market share in the rapidly growing sector.

The broader Hang Seng index remained relatively stable, rising 0.2%.