Alibaba, Meituan, JD.com commit to truce after regulator calls for ‘rational' competition
Advertisement
On Friday, the three companies vowed to engage in 'rational' competition and resist offering excessive subsidies, according to separate statements published two weeks after China's market regulator urged them to stop engaging in excessive competition,
known locally as 'involution'. Alibaba, which operates Taobao and Ele.me, owns the South China Morning Post.
Alibaba's Hong Kong-listed shares gained 1 per cent on Friday while Meituan gained 0.5 per cent, despite a broad decline in the Hang Seng stock index. JD.com was down 0.2 per cent
The fierce competition between the instant commerce giants was exemplified last month, when they offered consumers incentives such as
free cups of milk tea and free lunchboxes. All three companies offered such freebies along with eye-popping discounts to catch consumer attention.
The JD.com (left) and Meituan logos are shown on smartphone screens in this arranged photograph. Photo: Shutterstock Images
China's State Administration for Market Regulation, the country's market regulator, summoned
Alibaba 's Ele.me, along with
Meituan and
JD.com , in late July, urging them to regulate promotional behaviour and engage in 'rational' competition.
Advertisement
The meeting aimed to 'further regulate promotional behaviour, encourage rational competition, and foster a healthy ecosystem and a win-win situation for consumers, merchants, delivery riders, and platform operators', the regulator said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
Over half of Hong Kong residents plan to work past 65 due to retirement savings shortfall
More than half of Hong Kong residents do not plan to retire at the typical retirement age of 65, with many feeling that they cannot reach the average HK$5 million (US$637,000) savings target necessary for a comfortable post-work life, according to the T. Rowe Price Hong Kong Retirement Survey released on Thursday. About 52 per cent of respondents indicated they would not retire at age 65. Among them, about 80 per cent preferred not to retire at all or opted instead for a 'micro-retirement', which involves taking a break for several months to a few years before returning to work. The survey, the first of its kind by the US financial firm, polled 600 Hong Kong residents over the age of 30 in May. 'Financial pressure is certainly one factor, especially in a high-cost city like Hong Kong,' said Shen Wenting, global investment solutions strategist and portfolio manager at T. Rowe Price, which manages US$1.56 trillion in assets. About 60 per cent of respondents had a retirement savings target between HK$2 million and HK$10 million, with the average being HK$5 million, considered enough for them to feel secure in completely stopping work. For those considering a micro-retirement, the average savings target was HK$2 million. The average retirement savings target of 60 per cent of the respondents was HK$5 million. Photo: Nora Tam However, one-third of respondents felt they could not achieve their goals, and 40 per cent reported not having any retirement savings target at all. This may explain why 62 per cent cited the need to maintain an income as their reason for not retiring at age 65.
South China Morning Post
an hour ago
- South China Morning Post
Forget long-term leases. Here's how Hong Kong can reinvent retail
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Hong Kong's business environment is undergoing a profound transformation. Once defined by its buzzy street life and guaranteed foot traffic, the city now faces a new reality shaped by digital disruption and altered consumer behaviour. Given the convenience of online shopping and the quality of customer service on the mainland , foot traffic to physical retail and dining outlets in Hong Kong has declined. The city must come up with new business models. For businesses to remain viable, flexibility and innovation must become the new norm. The traditional reliance on long-term leases and static storefronts is proving unsustainable. The Hong Kong government can play a pivotal role in converting retail spaces in high-traffic areas into dynamic zones for rotating pop-up stores. Such a set-up would allow brands to test products, respond to seasonal trends and engage consumers without the burden of a permanent commitment. To support this shift, the government might consider offering incentives to landlords – such as tax breaks, streamlined licences for short-term tenants or co-investment in infrastructure upgrades. Landlords, in turn, can curate clusters of complementary businesses – such as wellness, fashion and tech – to create synergy and attract diverse consumers.
South China Morning Post
an hour ago
- South China Morning Post
Netflix-style iQiyi seeks US$300 million for Hong Kong stock market listing, sources say
IQiyi is seeking to raise US$300 million for a listing in Hong Kong this year, potentially becoming the latest US-listed Chinese firm to tap investors closer to home. The Netflix-style streaming service, owned by Baidu , has begun discussions with global banks about a second listing in the city, people familiar with the matter said, asking to remain anonymous while discussing a private deal. IQiyi's US stock rose as much as 6 per cent but pared gains to close little changed in New York. IQiyi, which hosts a plethora of content from Chinese period dramas to blockbuster Hollywood films, joins the likes of Contemporary Amperex Technology (CATL) in exploring a second listing in Hong Kong. The company vies with Tencent Holdings and Alibaba Group Holding to rank among the biggest video-streaming platforms in China, with an estimated 400 million-plus monthly active users. Negotiations around a listing are fluid and iQiyi may still reconsider. A company spokesperson did not provide a comment when reached by Bloomberg News. If it goes ahead, the Chinese firm will join a wave of listings that have fuelled Hong Kong's revival this year. They helped the city reclaim its standing as the world's second-largest market for share sales for the first time since 2012, reversing a years-long slump following the Covid-19 pandemic. Loosening regulations helped. Chinese companies have propelled that trend – mostly, like CATL, mainland-listed firms.
