Meituan, Alibaba Shares Jump as China Seeks to Curb Price Wars

(Bloomberg) -- Shares of China’s biggest food-delivery firms climbed arsenic the nation’s apical antitrust assemblage launched a probe into contention practices successful the sector, spurring hopes that authorities volition rein successful subsidy-driven terms wars.

Market person Meituan’s banal rallied 6.6% successful Hong Kong, the astir since May 29. Shares of Alibaba Group Holding Ltd. — the biggest challenger to Meituan — roseate 5.3%, portion the company’s US-listed shares extended gains to rally arsenic overmuch arsenic 11%.

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“The accrued scrutiny connected contention volition beryllium supportive of manufacture margins,” said Catherine Lim, an expert astatine Bloomberg Intelligence. “It volition curb subsidy-led enlargement and rise compliance costs for caller entrants.”

The State Council’s anti-monopoly and anti-unfair contention committee volition look into contention behaviour among transportation platforms nether China’s antitrust instrumentality done on-site checks, interviews and surveys, according to a connection released by the State Administration for Market Regulation connected Friday.

Beijing has heightened scrutiny of the retail assemblage since 2025, pursuing billions of dollars of concern by Alibaba, Meituan and JD.com successful subsidies and incentives to predominate repast delivery. Last year, the trio engaged successful 1 of China’s astir assertive terms wars, offering steep discounts and perks to lure consumers.

Investors are hoping that the probe volition assistance curb, if not eradicate, the rampant discounting and subsidies that person eroded margins for the companies.

Gains were wide crossed Chinese tech stocks successful Hong Kong connected Monday, with sentiment buoyed by a media study that DeepSeek was expected to motorboat its next-generation AI exemplary that features beardown coding capabilities successful the coming weeks. Kuaishou Technology — precocious successful the spotlight acknowledgment to its AI video app — and Bilibili Inc. each precocious much than 6%.

Shares of Chinese integer healthcare providers besides soared, with Alibaba Health Information Technology Ltd. gaining much than 10%. JD Health International Inc. roseate 5%.

Investors are besides awaiting imaginable developments from a large league successful Beijing aboriginal this week, wherever China’s AI developers are expected to convene.

The Hang Seng Tech Index gained 3.1%, portion a broader gauge of Asian stocks precocious 0.6%.