China's State Administration for Market Regulation (SAMR) instructed local market regulation authorities to carry out a special campaign from May to December to leverage credit-based regulation to address "involution" competition.The campaign sets out four key tasks, including conducting inspections of business entities in sectors prone to frequent "involution" competition. "Dual random" inspections will be conducted in high-risk sectors such as live-streaming e-commerce, food delivery, and the production of key industrial products. Inspection results will be disclosed through the National Enterprise Credit Information Publicity System to strengthen credit constraints. Identified issues and leads will be thoroughly investigated and handled in accordance with laws and regulations.Related News Citi Focuses on Launch Timeline of TENCENT (00700.HK) WeChat AI Agent; Larger Buybacks Signal Confidence, Reiterates BuyThe authorities will also penalize a number of business entities engaged in illegal and dishonest "involution" competition. A combination of credit supervision tools, including the list of business operation abnormalities, the list of seriously illegal and dishonest entities, and the public disclosure of administrative penalty information, will be applied to strictly and swiftly handle such cases. A batch of typical illegal and dishonest cases involving "involution" competition will be publicly exposed through newspapers, television, websites, and official WeChat accounts to create a strong deterrent effect, achieving the impact of "investigating one case, warning a group, and educating a sector|", and fostering a favorable environment for combating illegal and dishonest practices.The campaign also aims to establish and improve institutional mechanisms, including enhancing the management system for the list of seriously illegal and dishonest entities, and strengthening penalties against business operators involved in serious violations related to "involution" competition. Related NewsSummary of Latest Broker Ratings, TPs and Views on MEITUAN-W (03690.HK)
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