---
title: "JP Morgan: The fines for \"ghost restaurants\" in mainland China are manageable and will help improve the quality of industry orders"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283434664.md"
description: "JP Morgan's report pointed out that the fines for \"ghost kitchens\" are manageable, and the rectification requirements are limited. This ruling will eliminate non-compliant orders, improve the quality of industry orders, and support higher average transaction values and revenues. JD.com is seen as the clearest beneficiary, Alibaba benefits from reduced narrative risks, Meituan's impact has already been reflected in its stock price, while Pinduoduo faces slight negative effects"
datetime: "2026-04-21T03:32:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283434664.md)
  - [en](https://longbridge.com/en/news/283434664.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283434664.md)
---

# JP Morgan: The fines for "ghost restaurants" in mainland China are manageable and will help improve the quality of industry orders

JP Morgan published a report indicating that the market may misinterpret the State Administration for Market Regulation's administrative penalties regarding "ghost restaurants" on April 17 as a tightening of internet regulation in China and a simple negative impact on the earnings per share of food delivery platforms. The bank's view is more positive, and it distinguishes the impacts on different stocks more clearly.

The bank stated that the direct fines are manageable, and the operational rectification requirements are relatively limited. The more important impact is actually at the economic level; this ruling will eliminate a batch of non-compliant, low average order value, structurally loss-making orders, which will help improve the overall order quality in the industry, thereby supporting higher average order values, revenues, and operating profits per order.

Therefore, the bank believes that JD.com (09618.HK) is the most clear positive beneficiary of this event; Alibaba (09988.HK) will experience constructive effects due to reduced narrative risks; Meituan (03690.HK) has already reflected the impact in its stock price; and Pinduoduo (PDD.US) is slightly negatively affected.

(ha/)

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