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2026-03-26 10:24:11 Citi published a report stating that the strong statement made by the State Administration for Market Regulation (SAMR) on March 25 may signify the beginning of normalization in the food delivery industry competition, with subsidies expected to converge significantly in the coming months. The report noted that the authorities criticized the price wars in the food delivery sector for not only suppressing growth in the dining industry but also dragging down the overall Consumer Price Index (CPI) performance amid a core consumption recovery expected in the second to third quarters of 2025. The regulatory body urged the industry to abandon the "burning money" competition model and shift towards healthy competition centered on service quality. The bank believes that this regulatory stance will lead to a substantial reduction in subsidies within the food delivery industry, thereby enhancing the overall profitability of the sector. This is a positive signal for MEITUAN (03690.HK), as the easing of competitive pressure is likely to accelerate its profit recovery. For ALIBABA (09988.HK), it will alleviate the pressure on the EBITA of its China commerce segment. As for JD.COM (09618.HK), while the bank believes that a more rational competitive landscape will also be beneficial, JD.COM may still view its food delivery business as an investment for traffic acquisition. (ha/w)~ AASTOCKS Financial News URL: www.aastocks.com | |