Latest news with #pricecompetition
Yahoo
21-07-2025
- Business
- Yahoo
Meituan Jumps With Food Deliverers as Beijing Targets Price Wars
(Bloomberg) — Meituan ( MPNGY) led gains in China's food-delivery shares after the authorities sought to damp down rampant price competition in the sector. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Beijing-based Meituan climbed as much as 5% in Hong Kong after the State Administration for Market Regulation summoned the three largest food-delivery firms to a meeting Friday and required them to further regulate their promotions. (JD, climbed as much as 3.6%, while Alibaba (BABA, Group Holding Ltd., which owns rose 2.6%. 'The market believes that the irrational competition between these players may be resolved soon because they have been summoned by regulators,' said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore. The cooling of the price wars will be benefit all of the companies, 'including Alibaba, and Meituan, but Meituan will benefit more because food delivery and quick commerce were its core businesses to begin with, where it had the dominant market share,' Ling said. The current price wars in China's food-delivery sector were kicked off by earlier this year after it said it would make a foray into the area. Competition escalated further after Alibaba's announced subsidies last month. There's been growing discussion about 'RMB 0 purchase' promotions and deep discounting, analysts at Jefferies Financial Group wrote in a research note. A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot Elon Musk's Empire Is Creaking Under the Strain of Elon Musk How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Chinese regulator urges major food deliverers to compete fairly
China's State Administration for Market Regulation (SAMR) has called a meeting with prominent online food delivery companies, including from Alibaba Group, Meituan and to discuss ongoing price competition in the industry. The regulator has stressed the need for these companies to adopt more 'rational' competitive practices, as reported by the South China Morning Post. The SAMR's meeting aimed to regulate promotional activities, promote fair competition and create a balanced environment that benefits consumers, merchants, delivery personnel and platform operators. The regulator reminded the companies of their obligations under e-commerce, anti-unfair competition and food safety laws. In a separate session, the SAMR addressed food safety issues linked to live-streaming e-commerce, revealing that some food products sold during live-streamed events contained high levels of food additives or pesticide residues. Representatives from various live-streaming platforms and influencer agencies participated in this discussion, although their identities were not disclosed. This intervention by the SAMR follows a period of intense rivalry among the three food delivery platforms, which have been engaged in aggressive discounting to increase their market presence, according to the news agency. Recent promotions included significant reductions in delivery fees for items such as tea and coffee, and the expansion of their offerings to include groceries and other products. The competition intensified in mid-July 2025, with all three companies offering substantial subsidies. which initiated the competitive drive early in the year, revealed plans to invest more than 10bn yuan ($1.4bn) to enhance restaurant quality on its delivery platform. The company had announced its entry to the Chinese food delivery sector in February 2025. Alibaba has introduced a 50bn yuan subsidy initiative to encourage consumer spending on its Taobao Shangou service, along with promotional events. These competitive tactics have reportedly resulted in a marked increase in transaction volumes, with daily orders rising from 100 million at the beginning of the year to more than 250 million recently. However, the aggressive nature of this competition has led to criticism from industry figures, including Meituan's core local commerce business director, who described the current state of competition as 'irrational.' "Chinese regulator urges major food deliverers to compete fairly" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-07-2025
- Business
- Bloomberg
Meituan Jumps With Food Delivers as Beijing Targets Price Wars
Meituan led gains in China's food-delivery shares after the authorities sought to damp down rampant price competition in the sector. Beijing-based Meituan climbed as much as 5% in Hong Kong after the State Administration for Market Regulation summoned the three largest food-delivery firms to a meeting Friday and required them to further regulate their promotions. climbed as much as 3.6%, while Alibaba Group Holding Ltd., which owns rose 2.6%.
Yahoo
01-07-2025
- Business
- Yahoo
China Signals a Major Economic Reset -- What Investors Should Watch Next
China's top leaders just hit the brakes on one of the country's most chaotic market dynamics: runaway price competition. At a high-level economic meeting led by President Xi Jinping, policymakers pledged to crack down on disorderly low pricing and begin phasing out outdated industrial capacity. This comes as deflationary pressure continues to haunt the economy and Beijing searches for more stable levers of demand. Part of the new playbook includes building a unified national marketstandardizing infrastructure, aligning government practices, and breaking down local protectionism that has long distorted resource allocation. Warning! GuruFocus has detected 9 Warning Signs with AVAV. For investors, this could be the beginning of a more disciplined growth cycle. Officials also called for tighter oversight of local investment incentives and better disclosure practicessignaling that the era of subsidized overbuilding may be winding down. That shift could help restore pricing power to stronger players and gradually rebalance supply and demand in key industries. While these are still early signals, the policy language suggests a desire to transition from quantity-at-all-costs to quality-first growtha shift that could reshape the competitive landscape over time. Alongside these changes, Beijing also wants to supercharge its maritime economy, with targeted support for private investment in sectors like offshore wind, deep-sea fishing, marine tourism, and biopharma. The aim? Foster innovation and build national champions in high-value segments. If implemented well, these moves could create long-term tailwinds for firms aligned with state priorities. Companies like Tesla (NASDAQ:TSLA) and other global players exposed to China's industrial base may need to reassess how they navigate this next chapterwhere growth might come with more rules, but also more durability. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
01-07-2025
- Business
- Bloomberg
China Vows to Rein In Intense Competition, Build Unified Market
China's top leadership has pledged to curb aggressive price competition among businesses, aiming to accelerate efforts toward a unified national market to help boost domestic demand. Officials at a high-level economic meeting chaired by President Xi Jinping said they would crack down on 'disorderly' low-price competition and phase out outdated industrial capacity, Xinhua News Agency reported on Tuesday.
