The takeout war should come to an end! Regulators send signals to curb excessive competition, and Meituan's stock price surged over 11% in the afternoon.

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Related Reading: “The Delivery Wars Should Be Over”

On March 25, news reported that Meituan (03690.HK) surged significantly in the afternoon, rising by more than 11% at one point during the trading session. As of the time of this release, Meituan is quoted at HKD 86.45, with trading volume exceeding HKD 10.6 billion.

From the perspective of the news, this stock price increase is mainly due to a signal released by regulators aimed at curbing “involution.” Today, the State Administration for Market Regulation forwarded a commentary article from Economic Daily titled “The Delivery Wars Should Be Over.” The article states that the delivery wars affect not only restaurant owners’ financial ledgers, but also ordinary people’s livelihoods. When catering consumption, the “keystone” of the market, loses momentum due to price wars, the chill felt by the broader economy will ultimately filter down to every micro individual. Healthy competition should be a constructive contest of technological innovation, efficiency improvements, and service optimization—rather than a money-burning game propped up by capital, nor a zero-sum standoff that uses monopolistic advantages to control traffic and force sides. Let delivery prices return to a reasonable range. Help the catering industry escape the dilemma of “dead without subsidies, chaos with subsidies.” Shift market competition from competing on spending to competing on service. This is the true way to benefit enterprises and the public. Price wars don’t go far; involutionary competition has no winner. The delivery wars should be over.

Market analysis believes that this signal means regulators are likely to step in, putting an “end key” to the delivery subsidy war that has lasted nearly a year. For Meituan, this would imply that marketing and subsidy expenditures for its core delivery business in the future could be reduced significantly, thereby directly improving profit outlook expectations.

In addition, Meituan will release its earnings tomorrow (March 26). Institutions expect that for 2025Q4, revenue will be 92.15B yuan, and the expected earnings per share will be -2.488 yuan.

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Responsible Editor: Hao Xinyu