The market may have misinterpreted the State Administration for Market Regulation (SAMR)'s administrative penalties on "ghost restaurant" announced on April 17 as another tightening of China's internet regulation and as a straightforward negative impact on food delivery platforms' EPS, JP Morgan said in its report. The broker's view is more constructive and more differentiated by stock. The broker noted that the direct fines are manageable in amount, while the operational rectification requirements are relatively limited. More importantly, the economic impact is that the ruling will eliminate a batch of non-compliant, low average ticket, structurally loss-making orders. This will help improve industry order quality and support higher AOV, revenue, and operating profit per order.Related News UBS Lists Investment Ratings and TPs for Chinese Tech Stocks (Table)As a result, the broker believed JD-SW (09618.HK) -1.500 (-1.248%) Short selling $181.07M; Ratio 96.705% is the most clearly positive beneficiary of this development; BABA-W (09988.HK) -1.100 (-0.837%) Short selling $1.04B; Ratio 30.645% will see constructive impact owing to narrative de-risking; the impact on MEITUAN-W (03690.HK) -1.150 (-1.365%) Short selling $811.48M; Ratio 72.400% has largely been priced in; and PDD (PDD.US) faces a mildly negative impact.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-23 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
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