Shares of MEITUAN-W (03690.HK) +2.200 (+1.688%) Short selling $446.69M; Ratio 11.741% and JD-SW (09618.HK) +4.200 (+3.284%) Short selling $179.61M; Ratio 7.733% have underperformed the KraneShares Trust KraneShares CSI China Internet ETF (KWEB.US) benchmark over the past month, due mostly to investor concerns about JD-SW's aggressive entrance into China's food delivery market and potential reaction from MEITUAN-W, in its view, JPMorgan released a research report saying. The broker expected JD-SW's entry to have minimal impact on the current market structure, where MEITUAN-W/ Ele.me currently hold 75%/ 25% of the market share each. JPMorgan also estimated JD-SW's entrance to China's food delivery market to gain about 5% market share in 2025 and 2026, with delivery volume/ market share increasing to 10% by the end of 2025 but dropping in 2026.Related NewsCICC: CN Public Equity Funds' HK Stock Position Ratio Hits New High in 1Q; TENCENT/ BABA/ SMIC/ Others Most FavoredTherefore, JPMorgan kept ratings at Overweight on MEITUAN-W and JD-SW, but preferred MEITUAN-W in the short term. The broker slashed its target prices for MEITUAN-W/ JD-SW from $190/ $215 to $165/ $180.Although JD-SW quickly grabbed a 5% market share in China's food delivery market in just two months, JPMorgan believed that JD-SW's deeply subsidized growth strategy is unsustainable due to the relatively large losses from food delivery business to its group profit; and the difficulty in fully offsetting the loss of food delivery from cross-sell activities.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-02 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)