Stocks of Chinese food-delivery firms jumped on Monday, after China's top market regulator announced a market competition investigation of the food delivery services industry.
Meituan (3690) once surged 7.6 percent, while Alibaba (9988), which operates the Taobao Flash Sales, jumped over 5 percent.
Last Friday, the State Administration for Market Regulation said it will investigate and assess the competition among food delivery platforms, aiming to curb the involution of the sector.
Meituan noted that it will firmly support and engage with the investigation, while admitting that issues like price wars and subsidy battles are prominent in the market.
Taobao Flash Sales also stated that it welcomes and will actively cooperate with the authorities' investigation and assessment, saying that it will strictly fulfill its compliance responsibilities.
Competition has been fierce in China's instant retail market since 2025, with tech giants like Meituan, JD.com (9618), and Alibaba burning billions of dollars to seize consumers in the fast-growing delivery segment.
