Meituan, Alibaba Shares Jump as China Seeks to Curb Price Wars

Core Insights - China's top antitrust body has initiated a probe into competition practices in the food delivery sector, leading to a rise in shares of major companies like Meituan, Alibaba, and JD.com [1][4] Group 1: Market Reactions - Meituan's stock increased by 6.6%, marking its largest gain since May 29, while Alibaba's shares rose by 5.3% and JD.com's shares gained over 2% [1] - The overall sentiment in the Chinese tech sector was positive, with the Hang Seng Tech Index climbing by 3.1% [6] Group 2: Regulatory Actions - The State Council's anti-monopoly committee will investigate competition behaviors among delivery platforms through on-site checks, interviews, and surveys, as per the State Administration for Market Regulation [3] - Increased scrutiny is expected to support industry margins by curbing subsidy-led expansion and raising compliance costs for new entrants [2] Group 3: Industry Context - Since 2025, Beijing has intensified scrutiny of the retail sector due to significant investments in subsidies by major players like Alibaba, Meituan, and JD.com, which led to aggressive price wars [4] - Investors are optimistic that the ongoing probe will help mitigate the rampant discounting and subsidies that have negatively impacted profit margins for these companies [4]