Core Viewpoint - The National Development and Reform Commission (NDRC) is accelerating the revision of the pricing law to address the issue of low-price disorderly competition among enterprises, focusing on identifying unfair pricing behaviors such as predatory pricing and below-cost selling [1][2]. Group 1 - The NDRC will clarify the standards for identifying unfair pricing behaviors in the revised pricing law, particularly targeting behaviors aimed at eliminating competitors or monopolizing the market [1]. - The NDRC plans to conduct targeted cost investigations in industries with significant "involution" competition issues to understand production and operational conditions [1]. - The NDRC emphasizes that while competition is essential for market economy, excessive and disorderly competition can lead to negative outcomes such as quality decline and infringement, ultimately harming consumer rights and industry development [1]. Group 2 - The NDRC aims to guide enterprises towards scientific and rational pricing practices to effectively regulate market price order and promote orderly competition within industries [2].

Core Points - The National Development and Reform Commission (NDRC) is addressing the issue of low-price disorderly competition among enterprises, emphasizing the need for lawful governance in this area [1][3] - Healthy competition is essential for market economy, providing consumers with price benefits; however, excessive competition can lead to negative outcomes such as quality decline and infringement [3][4] Summary by Sections Governance Measures - The NDRC is implementing measures to regulate low-price disorderly competition, including revising the pricing law to clarify standards for identifying unfair pricing behaviors [3] - The focus will be on practices that aim to eliminate competitors or monopolize the market through below-cost pricing, with services also included in the scope of regulation [3] Policy Implementation - The NDRC plans to enhance policy promotion and conduct targeted cost investigations in industries with significant "involution" competition issues [4] - The goal is to encourage enterprises to self-regulate their pricing behaviors and maintain orderly market competition [4]

Core Viewpoint - The ongoing subsidy war has severely impacted physical stores, and the emergence of a "new battlefield" may pose even greater challenges to the industry [1][2]. Group 1: Impact on Physical Stores - The subsidy war has led to a significant increase in sales volume for some businesses, but profits are declining [1]. - A chain fast-food brand founder expressed a desire to limit the proportion of takeaway orders, indicating a preference to avoid being forced into the subsidy competition [1]. - Many merchants feel compelled to participate in the subsidy war due to their high dependency on delivery platforms, leading to intensified competition and reduced profits [1]. Group 2: New Battlefield and Industry Dynamics - The "new battlefield" refers to the shift from simple delivery services to a more integrated model involving production and delivery, which some platforms are adopting [1]. - The emergence of "new battlefield" dynamics may lead to a restructuring of the entire restaurant industry chain, with potential positive or negative outcomes [2]. - The capital-driven restructuring could either promote industry advancement and consumer benefits or result in chaos and disorder within the market [2]. Group 3: Regulatory Environment - Recent meetings of the Central Financial Committee and the Political Bureau emphasized the need to regulate low-price and disorderly competition in the market [3]. - Although the subsidy war has not been explicitly labeled as low-price disorderly competition, it exhibits characteristics of such competition, leading to regulatory scrutiny [3]. - The National Market Supervision Administration has engaged with relevant companies, indicating that continued non-compliance will not be overlooked [3].

Core Viewpoint - The Deputy Director of the State Administration for Market Regulation, Meng Yang, emphasizes the need to implement the Fair Competition Review Regulations and its implementation measures to address low-price disorderly competition and promote high-quality economic development [1] Group 1: Fair Competition Review - The focus is on enforcing the Fair Competition Review Regulations and enhancing review capabilities [1] - There is a commitment to eliminate various regulations and practices that hinder fair competition [1] Group 2: Economic Development - The initiative aims to contribute to the construction of a unified national market [1] - The actions taken are intended to support the promotion of high-quality economic development [1]

Group 1 - The Ministry of Industry and Information Technology (MIIT) emphasized the need to address low-price disorderly competition in the photovoltaic industry during a meeting with industry representatives [1] - The meeting included discussions on production operations, technological innovation, market competition, and industry ecosystem construction among 14 photovoltaic companies and industry association leaders [1] - The MIIT aims to enhance product quality and promote the orderly exit of outdated production capacity to achieve sustainable development in the photovoltaic sector [1] Group 2 - The photovoltaic industry has been experiencing structural overcapacity since 2023, leading to significant price declines across all segments and widespread losses among companies [2] - In 2024, the total revenue of 64 listed photovoltaic companies was 931.096 billion yuan, a decrease of 22.4% year-on-year, with net profits dropping from a profit of 105 billion yuan in 2023 to a loss of 29.8 billion yuan in 2024 [3] - The central government has signaled a crackdown on "involution" competition, with various ministries and local governments taking action to regulate competitive behaviors in the industry [3]

Core Viewpoint - The article emphasizes the need to promote the orderly exit of outdated production capacity to combat low-price disorderly competition and internal competition, thereby enhancing market vitality and optimizing resource allocation [2][4]. Group 1: Market Dynamics - The current low-price disorderly competition and internal competition reflect a significant lack of effective demand in the economy, exacerbated by external trade protectionism [2][3]. - Outdated production capacity poses a high-risk preference in the market, leading to adverse selection and moral hazard, which can disrupt market stability [2][5]. - The orderly exit of outdated production capacity is essential for achieving marginal balance in supply and demand, allowing competition to shift towards improving product quality and consumer surplus [2][6]. Group 2: Mechanisms for Exit - To facilitate the orderly exit of outdated production capacity, it is crucial to eliminate systemic barriers that hinder the operation of the Bankruptcy Law and improve the market exit mechanism [3][4]. - Strengthening market self-discipline and autonomy is necessary, including enhancing the checks and balances between principals and agents, and ensuring creditors can constrain the actions of company controllers [4][5]. - Regulatory bodies should conduct industry risk pressure tests and require companies to disclose their risk assessments regularly to manage potential risks effectively [4][5]. Group 3: Risk Management - Effective risk management involves quantifying and pricing the risks associated with outdated production capacity, which can aid in bankruptcy restructuring and liquidation processes [5][6]. - Misunderstanding of risks is a significant barrier to the exit of outdated production capacity; thus, the market's ability to identify, price, and allocate risks must be fully utilized [5][6]. - Creating a favorable business environment that encourages market participants to engage in risk-taking is vital for eliminating internal competition and low-price disorderly competition [6][7].

Group 1 - The S&P 500 and Nasdaq reached new highs, while expectations for interest rate cuts decreased, leading to a decline in U.S. Treasury bonds and a drop in gold prices by approximately 1.4% [1] - The U.S. non-farm payroll report was unexpectedly strong, causing the market to abandon bets on a rate cut in July [1] - The ISM services index for June in the U.S. was reported at 50.8, with a contraction in the employment index but a rebound in business activity and orders [1] Group 2 - China plans to strengthen governance over the photovoltaic industry to combat low-price and disorderly competition [1] - The Hong Kong Monetary Authority intervened twice in one day to buy Hong Kong dollars [1] - U.S. Treasury Secretary Yellen stated that the 20% tariffs on Vietnam will not be stacked on the existing 10% tariffs, and following the U.S.-Vietnam agreement, India and Indonesia are ramping up efforts [1] Group 3 - Japan's 30-year government bond auction saw strong demand, with the bid-to-cover ratio reaching the highest level since February [1] - Brent crude oil prices fell by over 1% amid reports of the U.S. planning to negotiate with Iran next week [1] - A one-hour phone call between the U.S. and Russian presidents discussed the situation in the Middle East and negotiations regarding Ukraine [1]

Group 1 - The central government is accelerating the construction of a unified national market to stabilize market confidence and development amidst increasing economic challenges [1][2] - The recent meeting addressed key issues such as chaotic low-price competition and proposed solutions to enhance product quality and regulate local investment practices [3][4] - The meeting emphasized the importance of internal openness and the need to unify market systems and regulations to strengthen the domestic market, which is crucial for economic stability [5] Group 2 - The meeting highlighted the necessity to reform the fiscal and tax systems, as well as the evaluation criteria for government performance, to address deep-seated economic issues [4] - It was noted that the current focus on GDP growth and fiscal revenue in performance assessments has contributed to market chaos, necessitating a shift towards a more balanced evaluation system [4] - The construction of a unified market is seen as a way to leverage China's large domestic market, which includes over 400 million middle-income individuals, to enhance economic resilience [5]