HONG KONG, Oct 11 (Reuters Breakingviews) - China"s Meituan (3690.HK) has comfortably digested a crackdown serving from Beijing. The $200 billion food delivery company’s shares rallied as much as 8% on Monday following an antitrust fine read more from the country"s market watchdog. At just 3% of domestic 2020 sales, the $528 million financial penalty falls well short of the maximum 10% permitted and is less severe than Alibaba"s (9988.HK), . There may be a bitter aftertaste, though. Because of boss Wang Xing"s investments in groceries read more and ride-hailing, the company is forecast to generate an operating loss of $3 billion this year, per analyst estimates compiled by Refinitiv. Fitch Ratings downgraded Meituan"s credit last month and warned it could be demoted to junk status. The next regulatory course also could be less palatable. Recent guidelines read more on offering gig economy workers more labour protections have been vague, but probably will result in lower profitability in businesses whose margins are already thin. What’s simmering will be harder for investors to swallow. (By Robyn Mak) On Twitter http://twitter.com/breakingviews HONG KONG, Oct 11 (Reuters Breakingviews) - China"s Meituan (3690.HK) has comfortably digested a crackdown serving from Beijing. The $200 billion food delivery company’s shares rallied as much as 8% on Monday following an antitrust fine read more from the country"s market watchdog. At just 3% of domestic 2020 sales, the $528 million financial penalty falls well short of the maximum 10% permitted and is less severe than Alibaba"s (9988.HK), . There may be a bitter aftertaste, though. Because of boss Wang Xing"s investments in groceries read more and ride-hailing, the company is forecast to generate an operating loss of $3 billion this year, per analyst estimates compiled by Refinitiv. Fitch Ratings downgraded Meituan"s credit last month and warned it could be demoted to junk status. The next regulatory course also could be less palatable. Recent guidelines read more on offering gig economy workers more labour protections have been vague, but probably will result in lower profitability in businesses whose margins are already thin. What’s simmering will be harder for investors to swallow. (By Robyn Mak) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: German pet retailer scrap has more rounds to go read more Eurowag heads off in wrong direction read moreChubb bulks up with Asia insurance deal read more NatWest flips bank guilty-plea logic on its head read more Debt woes crash China Inc. luxury dream read more