HK Movers | Meituan Jumps 4% as Regulators Meet Delivery Platforms; Easing Subsidy War Seen Boosting UE Recovery

Meituan shares jumped 4% in Hong Kong as regulators met with food delivery firms; Analysts said easing subsidy war aids UE rebound.

On July 18, according to CCTV News, China’s State Administration for Market Regulation summoned Ele.me, Meituan, and JD.com, urging them to engage in rational competition. Over the past week, catering industry associations from more than 10 provinces and cities — including Hubei, Shaanxi, Yunnan, Beijing, Qingdao, Dalian, Datong, Chongqing, and Shenzhen — have issued joint proposals calling for an end to cutthroat competition among food delivery platforms.

Guojin Securities noted that the potential end of the subsidy war would be better than market expectations, with attention now turning to changes in Saturday’s subsidy levels. Saturdays have been key days for order volume. This past Saturday, subsidies remained high, though the prevalence of “zero-cost” deals has eased. Meituan continues to hold strong market share in high-quality orders. As subsidies taper, its market share may stabilize or recover. If subsidy intensity continues to ease, Meituan’s unit economics (UE) could bottom out and rebound. Meituan has played more of a defensive role in this round of competition, and earlier market pessimism largely stemmed from uncertainty around UE. If subsidies are indeed moderating, it likely signals that UE has already bottomed out.