Xin Lang Cai Jing·2026-03-26 01:25Core Viewpoint - The article discusses the recent regulatory actions to curb excessive competition in the food delivery sector, which is seen as a measure to stabilize the economy and ensure normal livelihoods for businesses and workers [1][6]. Group 1: Market Reactions - Following the regulatory news, leading tech stocks such as Meituan and Alibaba saw significant price increases, with Meituan rising over 12% and Alibaba over 6% [1][6]. - The Hong Kong Internet ETF (513770) also experienced a price increase of more than 3% during the same period [1][6]. Group 2: Market Conditions - The Hong Kong market faced a phase of capital pressure from mid-February to early March, influenced by geopolitical tensions and rising oil prices, which affected global risk appetite [1][6]. - The A-share market's decline, particularly the Shanghai Composite Index falling below 4000 points, contributed to a downward trend in the Hong Kong market [1][6]. Group 3: Future Outlook - The first quarter is identified as a challenging period for capital and earnings in the Hong Kong market, with internet sector valuations dropping to around 10% of the five-year historical average [2][7]. - Positive factors are emerging, particularly in AI innovation and product adoption, which are expected to drive future market performance [2][7]. - Alibaba has set a target for its "cloud + AI" external revenue to exceed $100 billion annually over the next five years, indicating potential for profit margin improvement [2][7]. - The ongoing competition in the instant retail sector, particularly in food delivery, is not yielding significant positive feedback, and regulatory voices suggest a decline in this "involution" type of competition [2][7].