Understanding the Market | Meituan-W rose over 3% in the afternoon, and the Zunyi Catering Association called for an end to subsidies. Institutions say Meituan is likely to maintain its market share

Meituan-W rose over 3% in the afternoon, up 3.14% as of the time of writing, priced at HKD 124.7, with a transaction volume of HKD 6.196 billion. According to Xinhua Finance, on July 15, the Restaurant Industry Association of Honghuagang District, Zunyi City, issued a proposal calling for takeaway platforms to stop "involution-style" subsidies and unfair competition. Additionally, in the early hours of July 13, Meituan released a report stating that as of July 12 at 23:36, the daily order volume for Meituan's instant retail exceeded 150 million orders. Among them, the order volume for Shenqiangshou exceeded 50 million orders, and the order volume for Pinghaofan exceeded 35 million orders. Previously, CMB International pointed out that the subsidy war that began in early Q3 could lead to a double-digit year-on-year growth rate in daily orders. Meituan's preferred selection has closed loss-making areas, expected to release about 3 to 4 billion yuan in losses to supplement subsequent takeaway subsidy investments. Even if the subsidy war continues until the end of the year, Meituan still has the possibility of maintaining operational profit at breakeven. The firm believes that the operations and scheduling on the merchant and rider side remain core to maintaining market share, and Meituan's takeaway service still has a leading advantage, with a high probability of maintaining market share