Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CLSA: Tighter Regulation on Food Delivery Subsidies Could Open New Profit Opportunities for CN Catering Industry
Recommend 14 Positive 28 Negative 3 |
||||
|
||||
|
China's State Council has initiated an antitrust investigation into the competitive landscape of the food delivery industry, a move signaling an upgrade in regulatory attitudes towards the long-standing "food delivery subsidy war", CLSA commented in its research report. CLSA believes this may become a key turning point in transforming the competitive ecosystem of the Chinese catering industry and an engine pushing forward the restoration of corporate profitability, given that subsidies for food delivery or on-demand retail have shown no signs of stopping over the past year even though the State Administration for Market Regulation has held two rounds of discussions with MEITUAN-W (03690.HK), BABA-W (09988.HK), and JD-SW (09618.HK). This time, the investigation was initiated by the antitrust committee directly responsible to the State Council, making its authority and clarity of objectives, as CLSA emphasized, far beyond previous efforts. For example, the committee had previously led antitrust investigations into BABA-W's and MEITUAN-W's "choose one out of two" practices, ultimately imposing massive fines of RMB18 billion and RMB3.4 billion, respectively. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
