Buy Alibaba, Sell Meituan Pair Trade Thrives on Price War Bets

Delivery couriers for Alibaba's Ele.me, left, and Meituan in Shanghai. Betting on the widening gap in stock performance of two of China’s biggest internet companies has been a slam-dunk this year, and analysts say the trade may have further to run. Going long on Hong Kong-listed Alibaba Group Holding Ltd. combined with a short on Meituan would have delivered a return of 130% year to date. That’s come as Meituan shares slumped on market share loss to Alibaba in food delivery, while Alibaba’s stock has dou ...