Core Viewpoint - The rapid growth of the food delivery market has led to significant job creation and improvements in labor rights, with platforms like Taobao Shanguo and Meituan actively enhancing rider protections and income opportunities [1][4][5] Group 1: Employment and Labor Rights - Taobao Shanguo reported over 2 million active riders in August, creating more than 1 million new jobs compared to the previous year [1] - The overall employment landscape has improved, with the food delivery sector contributing to a significant increase in job opportunities and income for riders [4] - The number of riders earning over 10,000 yuan per month has increased to 2.8 times compared to last year [4] Group 2: Market Growth and Competition - The food delivery market has seen a doubling in scale, with daily orders increasing from around 100 million in May to over 200 million currently, peaking at nearly 300 million [1] - New platforms have entered the market, leading to healthy competition and innovation in service delivery, with significant growth in night orders across various cities [2] - The introduction of "warehouse stores" has met consumer demand for timely delivery, contributing to increased consumption [2] Group 3: Consumer Behavior and Spending - Online retail sales grew by 6.3% year-on-year, accounting for 24.9% of total retail sales, indicating strong digital consumption [1] - A study from Peking University found that every 1 yuan spent on Taobao Shanguo coupons generates an additional 6.76 yuan in overall consumption [2] Group 4: Business Model Innovation - Platforms are innovating their business models, such as Taobao's new membership system that integrates various services to enhance consumer engagement [3] - Differentiated strategies are emerging among platforms, with Meituan focusing on local commerce and Taobao Shanguo leveraging Alibaba's ecosystem [3] Group 5: Societal Impact - The competitive landscape has created shared value, benefiting not only the platforms but also the broader community, including small businesses and indirect employment opportunities [4][5] - The food delivery sector's growth has positively impacted the restaurant industry, with many small businesses experiencing a revival [4]

Core Viewpoint - The three major food delivery platforms in China have called for the regulation of industry competition to correct market failures and establish a fair competitive environment for all business entities [1] Industry Summary - The article emphasizes that disorderly competition is detrimental to both industry health and the platforms themselves, advocating for a return to rational competition to create greater value [1] - It highlights that irrational competition leads to a lose-lose situation, while rational competition can enhance total factor productivity, benefiting consumers and ensuring companies can innovate [1] - Regulatory bodies are encouraged to guide platforms away from price wars towards improving internal capabilities and creating new value through innovation and service upgrades [1] Market Potential - With a population of over 1.4 billion, the Chinese market is large enough to accommodate fair competition among multiple platforms [1] - The article suggests that platforms should leverage their strengths and collaborate to expand the market, creating a better ecosystem for consumers, merchants, and delivery personnel [1]

Core Viewpoint - The recent commitments from major food delivery platforms to regulate promotional activities and resist unfair competition signal a shift towards rational competition in the industry after a period of intense subsidy wars [1][2]. Group 1: Industry Dynamics - The food delivery industry has become an essential part of daily life, providing convenience for consumers and new sales channels for businesses [1]. - Recent aggressive subsidy practices, such as "0 yuan purchase," have harmed not only merchants' interests but also consumer experience, rider rights, and the long-term development of the industry [1]. - While large-scale subsidies can temporarily stimulate consumption and increase online orders, the negative effects of extreme subsidies are becoming apparent [1]. Group 2: Regulatory Actions - In response to the situation, regulatory authorities took action by meeting with major platforms like Ele.me, Meituan, and JD.com, urging them to comply with laws and regulations and to rationally participate in competition [2]. - The collective commitment from these platforms to resist malicious competition is seen as a positive signal for industry development [2]. - Each platform has expressed intentions to adhere to legal standards, eliminate unfair competition, and create transparent subsidy mechanisms to support merchants [2]. Group 3: Future Outlook - The healthy development of the food delivery industry is crucial for driving consumption and promoting employment [3]. - With the platforms' collective resistance to malicious competition, the industry is expected to enter a new phase of development [3]. - Establishing a fair and mutually beneficial industry ecosystem is essential for stimulating market vitality, fostering continuous innovation, and creating value for consumers, merchants, and riders [3].

Core Viewpoint - The recent commitments from major food delivery platforms to regulate promotional activities and resist unfair competition signal a shift towards rational competition in the industry after a period of intense subsidy wars [1][2]. Group 1: Industry Dynamics - The food delivery industry has become an essential part of daily life, providing convenience for consumers and new sales channels for businesses [1]. - Recent aggressive subsidy practices, such as "0 yuan purchase," have harmed not only merchants' interests but also consumer experience, rider rights, and the long-term development of the industry [1]. - While large-scale subsidies can temporarily stimulate consumption and increase online orders, the negative consequences of extreme subsidies are becoming evident [1]. Group 2: Regulatory Actions - In response to the situation, regulatory authorities took action by meeting with major platforms like Ele.me, Meituan, and JD.com, urging them to comply with laws and regulations and to rationally participate in competition [2]. - The collective commitment from these platforms to resist malicious competition is seen as a positive signal for industry development [2]. - Each platform has expressed intentions to eliminate unfair competition and avoid irrational promotional activities, emphasizing the need for a transparent subsidy mechanism [2]. Group 3: Future Outlook - The healthy development of the food delivery industry is crucial for driving consumption and promoting employment [3]. - With the platforms collectively resisting malicious competition, the industry is expected to enter a new phase of development [3]. - Establishing a fair competition and mutually beneficial industry ecosystem is essential for stimulating market vitality and fostering continuous innovation, ultimately creating more value for consumers, merchants, and riders [3].

Core Viewpoint - Major platforms such as Meituan, Ele.me, and JD.com have collectively announced their commitment to "regulate promotions" and implement measures to limit subsidy behaviors, indicating a shift towards more rational competition in the market [1] Group 1: Company Actions - Meituan, Ele.me, and JD.com have issued statements on their official websites promising to standardize promotional activities [1] - The companies have outlined several restrictions on subsidy practices, including avoiding irrational promotional activities and not selling goods and services at prices significantly below cost [1] Group 2: Regulatory Context - The simultaneous statements from these platforms may be a response to ongoing regulatory pressures, following a recent round of administrative talks initiated by the State Administration for Market Regulation [1] - On July 18, the State Administration for Market Regulation announced that it had conducted administrative talks with food delivery platforms, urging them to engage in rational competition [1]

Core Viewpoint - The three major food delivery platforms in China have called for a return to rational competition to address the issue of disorderly competition in the industry, which has been exacerbated by aggressive promotional activities and the entry of new players like JD.com [1][2]. Group 1: Industry Competition - The food delivery market has seen intensified competition with platforms launching aggressive promotions such as "0 yuan purchase" and "1 cent purchase" to capture market share [1]. - The entry of JD.com into the food delivery sector has significantly changed the competitive landscape, prompting existing players to respond with various promotional strategies [1]. - Regulatory bodies have intervened by urging platforms to comply with laws and regulations, aiming to establish a fair and orderly competitive environment [1][2]. Group 2: Impact of Disorderly Competition - Disorderly competition can distort market consumption structures and negatively impact the normal operations of merchants, despite consumers seemingly benefiting from lower prices [2]. - Increased order volumes due to aggressive competition may lead to safety risks for delivery personnel, highlighting the need for a balanced approach to competition [2]. - The platforms recognize that irrational competition leads to a lose-lose situation, while rational competition can enhance overall productivity and create greater value for consumers and businesses alike [2]. Group 3: Regulatory Measures - Regulatory authorities have previously addressed similar issues in other sectors, such as community group buying, by implementing guidelines to maintain fair competition [3]. - The newly revised Anti-Unfair Competition Law, effective from October 15, will prohibit platforms from forcing merchants to sell below cost, further promoting a fair competitive environment [3]. - The platforms are encouraged to adopt a long-term strategic vision by engaging in rational competition and fulfilling their corporate responsibilities [3].

Core Viewpoint - UBS maintains a "buy" rating for Sea Ltd, reaffirming a target price of $200, indicating a potential upside of approximately 24% over the next 12 months, driven by confidence in the improvement of Sea's core business and a more rational competitive environment in the e-commerce sector [1][2]. E-commerce Business - The competitive landscape in Southeast Asia's e-commerce market is becoming more rational, particularly for Shopee, allowing Sea to maintain growth without sacrificing profit margins [1][6]. - UBS highlights that Shopee's pricing strategy has effectively limited the risk of a new price war, enabling the company to grow at or above the market average while improving profitability [6]. Financial Services - SeaMoney, the digital financial service segment, is projected to grow significantly, with revenues expected to rise from $1.22 billion in 2022 to $3.45 billion in 2025, potentially achieving profitability around 2025 [9]. - Cost control and operational leverage are key factors in the expected profitability of SeaMoney, alongside its synergy with Shopee's ecosystem [9]. Gaming Business - The digital entertainment segment, Garena, is expected to recover slightly after a decline, with revenues projected to rise from $1.81 billion in 2023 to $2.55 billion in 2025, supported by existing game management and new market expansions [10]. - Despite challenges, Garena is anticipated to provide stable cash flow and support overall profitability for Sea [10]. Financial Projections - UBS forecasts Sea's total revenue to grow from $12.70 billion in 2023 to $21.68 billion in 2025, driven primarily by e-commerce and financial services [3][5]. - The company is expected to achieve significant EBIT growth, with projections of $3.05 billion in 2025, and EPS anticipated to increase from $1.83 in 2024 to $4.11 in 2025 [3][5]. Valuation Comparison - Sea's current valuation metrics, such as EV/EBITDA and P/E ratios, are considered attractive compared to peers in the high-growth internet sector, suggesting potential for valuation expansion [4].

Core Viewpoint - The China Metal Materials Circulation Association has issued an initiative to resist "involution-style competition" and promote a scientific and orderly development of the steel circulation industry, emphasizing a shift from price wars to value-based competition [1] Group 1: Rational Competition - The industry is urged to adhere strictly to the Anti-Unfair Competition Law of the People's Republic of China and to resist unfair practices such as dumping below cost, damaging reputation, and stealing trade secrets [1] - The association advocates for healthy competition based on product quality, service value, and technological innovation [1] Group 2: Maintaining Reasonable Profits - The industry is encouraged to recognize that sustainable operations are fundamental to development, moving away from short-sighted behaviors like "exchanging volume for price" and "drinking poison to quench thirst" [1] - There is a call to collectively maintain reasonable price levels that align with market rules and cost structures, ensuring companies can secure reasonable profits and necessary investments in research, environmental protection, and safety [1]

Investment Rating - Industry rating: Recommended [4] Core Views & Investment Suggestions - The recovery of H20 chip sales to China signals positive developments in US-China relations, with the approval of H20 chip sales and the introduction of RTX Pro GPU designed for the Chinese market by Nvidia's CEO [2][24] - The chip ban lift is seen as a pragmatic breakthrough in US-China technological cooperation, alleviating domestic computing power bottlenecks and reinforcing the effectiveness of the Geneva framework [2][24] - The regulatory emphasis on rational competition among major food delivery platforms like Ele.me, Meituan, and JD.com aims to curb irrational subsidies and promote a healthy, sustainable development of the food service industry [2][24] - The report maintains a cautious optimism regarding trade negotiations and continues to favor leading Chinese technology firms, suggesting that companies with foundational technology capabilities will gradually demonstrate their long-term investment value [3][25] Market Overview - During the week of July 14-18, 2025, the Shanghai Composite Index rose by 0.69%, the CSI 300 Index increased by 1.09%, and the ChiNext Index saw a rise of 3.17% [1][11] - The Hang Seng Index increased by 7.39%, while the Hang Seng Internet Index rose by 2.84%, with the media sector lagging behind the Hang Seng Index by 4.55 percentage points [1][11] - The SW Media Index fell by 2.24%, ranking last among 31 industries in terms of performance [1][11] Sub-industry Data Film Industry - The top three films by box office for the week were "The Lychee of Chang'an" with 121.17 million yuan (21.4% market share), "Liao Zhai: Lan Ruo Temple" with 76.42 million yuan (13.5%), and "The Legend of Hei 2" with 65.84 million yuan (11.6%) [27][28] Gaming Industry - The top three iOS games by revenue were "Honor of Kings," "Delta Force," and "Peacekeeper Elite," while the top three Android games were "Heart Town," "Honkai: Star Rail," and "My Leisure Time" [30][31] TV Series Industry - The top three TV series by broadcast index were "Morning Snow Record" (82.5), "Splendid Blossoms" (81.4), and "Book Scroll Dream" (81.1) [32][33] Variety and Animation - The top variety show was "Running Man Season 9" with a broadcast index of 80.5, followed by "Comedy King Stand-up Season 2" and "New Rap 2025" [34] - The top three animated shows were "Cang Yuan Tu" (352.3), "Happy Hammer" (259.9), and "Xian Ni" (232.7) [36]

Core Viewpoint - The recent regulatory discussions with major food delivery platforms like Ele.me, Meituan, and JD.com aim to address excessive competition and promote rational business practices in the food delivery industry [1][3]. Group 1: Industry Challenges - The food delivery industry has become an essential part of daily life, providing convenience for consumers and new sales channels for restaurants [1]. - Recent excessive subsidy competition among platforms has led to irrational market conditions, negatively impacting the restaurant industry [1]. - Many restaurants face a dilemma where they must lower profits to participate in subsidy programs, leading to unsustainable business practices [1][2]. Group 2: Market Dynamics - Excessive subsidies disrupt normal market order, resulting in resource misallocation as platforms invest heavily in subsidies rather than improving core capabilities like delivery efficiency and service quality [1]. - This type of competition can create unfair market conditions, marginalizing small businesses that cannot afford high subsidy costs, while larger players consolidate their market positions [2]. Group 3: Regulatory Response - The regulatory discussions serve as a timely correction to market chaos, guiding the industry towards healthier development [3]. - Platforms are encouraged to shift focus from subsidies to enhancing service quality, such as optimizing delivery algorithms and ensuring food safety [3]. - The regulatory intervention aims to pause excessive subsidy competition, fostering a collaborative environment for platforms, merchants, consumers, and delivery personnel to achieve mutual benefits [3].