Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of 78.95 billion HKD on June 23, 2023, indicating strong investor interest in certain stocks while others faced net sell-offs [1]. Group 1: Net Buying and Selling Activities - The top net bought stocks included Meituan-W (03690) with 15.14 billion HKD, China Construction Bank (00939) with 8.43 billion HKD, and SMIC (00981) with 6.78 billion HKD [4][5]. - The stocks with the highest net selling included Alibaba-W (09988) with 12.85 billion HKD, CNOOC (00883) with 3.26 billion HKD, and Xiaomi Group-W (01810) with 3.18 billion HKD [5]. Group 2: Company-Specific Developments - Meituan announced a strategic transformation to expand its instant retail business, which includes exploring a "next-day delivery + self-pickup" model and shutting down operations in certain regions while retaining key markets like Guangdong and Hangzhou [4]. - China Construction Bank's stable asset quality and strong dividend yield were highlighted in a report by Zhongtai Securities, which recommended the banking sector due to its resilience in a "weak cycle" environment [4]. - SMIC's net buying was influenced by reports of potential changes in U.S. policy regarding technology exemptions for major semiconductor companies operating in China [5]. - Alibaba's net selling was attributed to its restructuring efforts, integrating Ele.me and Fliggy into its e-commerce division to enhance synergies in the instant retail sector [5].

Group 1 - Southbound funds had a significant net purchase of 7.895 billion yuan today [1] - In the Hong Kong Stock Connect (Shanghai), China Construction Bank and Meituan-W received net purchases of 844 million HKD and 705 million HKD respectively [1] - Alibaba-W had the highest net sell amount, totaling 405 million HKD [1] Group 2 - In the Hong Kong Stock Connect (Shenzhen), Meituan-W and Pop Mart received net purchases of 810 million HKD and 407 million HKD respectively [1] - Alibaba-W again had the highest net sell amount, reaching 880 million HKD [1]

Core Viewpoint - Meituan's community e-commerce business, Meituan Youxuan, is suspending operations due to long-term unprofitability, with a focus on utilizing existing supply chain capabilities for new business exploration [2][4][7]. Group 1: Business Suspension - Meituan Youxuan has begun closing warehouses and suspending operations as of June 23, 2023, with delivery services halted [2]. - Official announcements indicate a shift in strategy to leverage existing supply chain and distribution networks, focusing on "next-day delivery + self-pickup" models and community retail innovations [4][6]. Group 2: Financial Performance - Meituan Youxuan has faced significant losses, with a reported operational loss of approximately 30 billion yuan in Q4 2020 [8]. - In 2023, Meituan's new business segment, including Meituan Youxuan, reported a total loss of 20.2 billion yuan, a year-on-year reduction of 29% [8]. - By Q3 2024, losses from Meituan's new business were around 1 billion yuan, with Meituan Youxuan's losses estimated at 1.7 billion yuan for the same quarter, indicating a slowing rate of loss reduction [8]. Group 3: Market Position and Strategy - Meituan Youxuan has been crucial for Meituan in reaching lower-tier markets, adding over 100 million new users since its launch [10]. - The business is part of Meituan's broader fresh food strategy, aimed at testing market potential and validating business models, despite facing intense competition from Pinduoduo's Duoduo Maicai [7][8].

Core Viewpoint - JD.com is aggressively entering the hotel and travel industry with a "0 commission" policy, aiming to compete with established players like Ctrip, Meituan, and Tongcheng [3][40]. Group 1: Market Dynamics - JD.com received nearly 50,000 applications from hotels within two days of announcing its entry into the OTA market [3]. - Ctrip holds a dominant position in the OTA market with a 56% GMV market share in 2024, particularly excelling in the high-end hotel segment [8]. - Ctrip's 2024 net revenue reached 53.294 billion RMB, a 20% year-on-year increase, with a net profit of 17.2 billion RMB, reflecting a 72% growth [9]. Group 2: Competitive Landscape - The online food delivery market, represented by Meituan, has a significantly lower profit margin compared to the OTA sector, with Meituan's projected net profit margin for 2024 at 2.8% [11]. - The OTA market is characterized by high customer acquisition costs and a power imbalance between platforms and hotel operators, leading to ongoing tensions [15][16]. - JD.com aims to leverage its supply chain capabilities to provide value to the hotel and restaurant sectors, addressing inefficiencies in the current market [18]. Group 3: Historical Context and Strategy - JD.com has been exploring the travel sector since 2011 but has struggled to gain significant traction [20][28]. - The company has previously made strategic acquisitions, such as the purchase of Tuniu in 2015, but faced challenges in maintaining a competitive edge [22][24]. - JD.com is now focusing on a new business model for food delivery that promises to address food safety issues, indicating a broader strategy to innovate across its service offerings [33][37]. Group 4: Future Outlook - JD.com is positioning itself to disrupt the OTA market by offering a transparent pricing model and eliminating bundled sales, which could shift the competitive landscape [50]. - The company is actively recruiting talent for its travel division, indicating a commitment to building a robust operational framework [47]. - The competitive environment includes not only traditional players like Ctrip and Meituan but also emerging platforms like Douyin and Xiaohongshu, which are entering the market with content-driven strategies [54].

21世纪经济报道记者周慧 北京报道 6月23日，"美团优选关闭"冲上微博热搜。 多地网友在社交媒体上晒出美团优选页面弹出的业务调整通知消息，消息称"由于局部业务调整，您所在的区域自6月23日起将 暂停接单"。根据社交媒体上流传的通知，美团优选业务调整，近期会退出部分亏损地区，广东、福建、浙江等地保持正常运 营。 6月23日上午，美团发布消息称，美团优选将进一步利用已建设的供应链及仓配网络，集中资源聚焦优势区域，继续探索"次日 达+自提"模式和社区零售新业态；同时，深耕生鲜食杂供应链，为美团用户提供更具质价比的商品。 上述消息，侧面回应了美团优选部分区域业务调整的消息，突出"集中资源聚焦优势区域"和转型探索新业态。21世纪经济报道 记者联系美团采访，对于美团优选"各地陆续关仓"以及"部门人员解散"的消息，美团回应称，美团优选在转型升级，并进行局 部业务调整，不存在部门解散的情况。 另外，21世纪经济报道记者从相关渠道获悉，美团优选团队不少人转而参与最新启动线下业务"N项目"，负责线下门店营运工 作，其余人则将分批次加入其他业务。 美团优选在县域和乡镇市场下沉的很广泛，获客的吸引力之一就是低价。美团发布的2020 ...

Group 1 - The core viewpoint of the article is that Goldman Sachs identifies a group of ten prominent Chinese private enterprises, termed "Prominent 10," which are emerging as core assets in the Chinese stock market, comparable to the US "Mag 7" in terms of market position and competitiveness [1][4][12] - The Prominent 10 includes major companies across technology, consumer, and manufacturing sectors, collectively valued at $1.6 trillion, representing 42% of the MSCI China Index, with an average daily trading volume of $11 billion [1][4] - The expected compound annual growth rate (CAGR) for the earnings of the Prominent 10 from 2025 to 2027 is projected to be 13%, with a current price-to-earnings (P/E) ratio of 16 times, indicating both growth and valuation advantages [1][4] Group 2 - In comparison to the US Mag 7, the Prominent 10 has a total market capitalization of $1.6 trillion, which is only 8.3% of the Mag 7's $19.2 trillion, yet the Prominent 10 has shown an average return on equity of 17% over the past five years, close to the Mag 7's 39% [4][6] - The Prominent 10's P/E ratio stands at 16 times, significantly lower than the Mag 7's 28.5 times, suggesting a valuation advantage, while their research and capital expenditure as a percentage of revenue is 15%, indicating potential for technological investment [4][6] Group 3 - The Prominent 10 has demonstrated growth in key areas such as new energy (BYD), AIoT (Xiaomi), and local services (Meituan), aligning with China's themes of "self-control" and "consumption upgrade," while the Mag 7 relies more on technological monopolies [6][12] - The Prominent 10's stock prices have increased by 54% since the end of 2022, outperforming the MSCI China Index by 8 percentage points in the current year [12] Group 4 - Goldman Sachs employs a three-tiered screening framework to identify the Prominent 10, focusing on industry concentration, company competitiveness, and institutional ratings, ensuring that only companies with significant market share and high R&D/capital expenditure intensity are included [9][12] - For instance, Tencent holds a 79% profit share in the interactive media sector, while Meituan captures 80% of the local service revenue [9][12] Group 5 - The Prominent 10's market dominance is evidenced by significant metrics: Tencent has over 1.2 billion monthly active users in social networking, a 65% market share in gaming, and a 89% penetration rate in digital payments [12][13] - R&D investment for the Prominent 10 averages 9% over the past five years, with specific companies like Hengrui Medicine at 29% and BYD at 13% for capital expenditure, indicating strong commitment to innovation and capacity expansion [13] Group 6 - The article concludes that the Prominent 10 represents three major investment themes in China's economic transformation: technological breakthroughs (BYD in new energy, Xiaomi in AIoT), consumption upgrades (Anta in high-end sports, Meituan in service consumption), and globalization benefits (Tencent in gaming, Alibaba in Southeast Asian e-commerce) [14]

Group 1 - Meituan Youxuan has decided to shut down operations in certain regions while retaining its business in Guangdong and Hangzhou [1] - The decision was finalized after discussions within the company last week, indicating a strategic shift in operations [1] - Many team members from Meituan Youxuan are transitioning to the newly launched offline business "N Project" under Xiaoxiang Supermarket, which is focused on store operations [1] Group 2 - The primary objective for Meituan in recent times has been to reduce losses, with Meituan Youxuan being a critical focus area for this strategy [1] - Regardless of whether the business continues or is shut down, the company is facing significant pressure [1]

Core Viewpoint - Meituan's decision to shut down operations in certain regions while retaining business in Guangdong and Hangzhou reflects a strategic shift towards reducing losses in its Meituan Youxuan segment, with a focus on transitioning resources to the new offline project "N Project" led by Gao Yulong [1][2] Group 1: Business Adjustments - Meituan Youxuan has undergone significant organizational restructuring, consolidating from 17 provinces to 9 to achieve cost reduction and efficiency [2] - The integration of operational and commercial divisions aims to leverage business data for strategic guidance, aligning with Meituan's operational philosophy [2] - The overall scale of Meituan Youxuan has decreased from over 1 trillion to approximately 700-800 billion, with a heightened focus on improving profit margins [2] Group 2: Product Strategy Changes - The emphasis on profitability has led to a rapid reduction in promotional products, private label items, and subsidies, with a notable withdrawal of white-label products [2] - The strategy has shifted to prioritize higher profit margins across various product categories, even affecting traditionally low-margin items like eggs [2] Group 3: Competitive Landscape - Since August 2024, Meituan Youxuan has reduced its focus on competitor Duoduo Maicai, indicating a shift in strategy to concentrate on its own market strengths [3] - The contrasting business models between Meituan and Duoduo Maicai highlight the challenges Meituan faces in adapting to a platform-based revenue model, which includes multiple income streams [3] - The transition to the "N Project" signifies Meituan's latest strategic pivot towards offline operations, emphasizing the importance of brand development and supply chain capabilities [3]

Core Insights - Meituan announced a comprehensive expansion of its instant retail business to enhance the quality and upgrade the retail new format [2][3] - The company has developed various instant retail formats, including Meituan Flash Purchase, Little Elephant Supermarket, and Meituan Preferred, to cater to consumer needs [2] Group 1: Business Expansion - Meituan Flash Purchase collaborates with nearly one million physical stores to offer a "30-minute delivery" service and has built over 30,000 flash warehouses nationwide [2] - During the recent 618 shopping festival, over 100 million users placed orders through Meituan Flash Purchase [2] - Little Elephant Supermarket has established nearly 1,000 front warehouses in 20 cities, aiming for a sales target of over 20 billion yuan in agricultural products this year [2] Group 2: Strategic Developments - Meituan Flash Purchase will continue to expand its product categories and optimize the shopping experience for 1 billion consumers [3] - Little Elephant Supermarket plans to expand its coverage to all first and second-tier cities and will source directly from 200 high-quality agricultural regions [3] - Meituan Preferred will focus on supply chain and distribution network improvements, exploring "next-day delivery + self-pickup" models [3] Group 3: International Expansion - Meituan is actively exploring overseas markets to participate in high-level global retail competition [3] - The overseas version of Little Elephant Supermarket, Keemart, has begun testing in two areas of Riyadh, Saudi Arabia, with plans for further expansion [3]

Group 1 - The Hang Seng Index opened down by 0.83% [1] - The Hang Seng Tech Index fell by 1.08% [1] - Among the tech index constituents, XPeng Inc. dropped by 2.14% [1] - JD.com decreased by 1.99% [1] - Trip.com Group fell by 1.88% [1] - NetEase declined by 1.86% [1] - Meituan dropped by 1.79% [1]