China's State Administration for Market Regulation (SAMR) recently summoned food delivery platforms such as MEITUAN-W (03690.HK)  -2.300 (-1.711%)    Short selling $1.15B; Ratio 15.125%   , Ele.me and JD-SW (09618.HK)  -2.100 (-1.575%)    Short selling $470.92M; Ratio 22.711%   to urge rectification of aggressive promotional behaviors, aiming to promote rational competition and healthy sustainable development in the catering industry, UBS published a research report saying.

The broker expected that weaker competition in the short term will drive stock prices up, with MEITUAN-W being its top pick, followed by JD-SW and finally BABA-W (09988.HK)  -1.700 (-1.413%)    Short selling $869.49M; Ratio 9.268%   (BABA.US)      .

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In the long term, UBS anticipated that market competition will continue but become more regulated, potentially leading to industry consolidation, with overall commission rates possibly declining and excessive investment expected to increase fulfillment costs.

In the internet sector, UBS' top pick is TENCENT (00700.HK)  -6.000 (-1.077%)    Short selling $1.48B; Ratio 11.044%   , followed by BABA-W, KUAISHOU-W (01024.HK)  -2.900 (-3.806%)    Short selling $678.43M; Ratio 13.245%   , TRIP.COM-S (09961.HK)  +1.500 (+0.296%)    Short selling $85.56M; Ratio 12.926%   (TCOM.US)      and NEW ORIENTAL-S (09901.HK)  -0.950 (-2.557%)    Short selling $78.15M; Ratio 29.339%   (EDU.US)      .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-24 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)