Meituan-W (03690.HK) saw its share price surge significantly during afternoon trading on March 25, with intraday gains exceeding 11%. At the time of writing, Meituan shares were trading at HK$86.45, with a turnover surpassing HK$106 billion.

The share price increase appears to be driven by regulatory signals indicating a pushback against excessive competition. Today, the State Administration for Market Regulation republished an economic commentary titled "The Food Delivery Wars Should End." The article argued that the intense competition in food delivery impacts not only restaurant operators' finances but also ordinary livelihoods. When essential consumption sectors like dining are disrupted by price wars, the resulting economic chill ultimately affects every individual. Healthy competition should focus on technological innovation, efficiency improvements, and service optimization rather than capital-intensive subsidy battles or zero-sum games that leverage monopoly power to control market flows. Allowing food delivery prices to return to reasonable levels, freeing the restaurant industry from the cycle of relying on subsidies, and shifting competition from burning cash to improving service quality would benefit both businesses and consumers. Price wars are unsustainable, and intense internal competition creates no winners. The food delivery wars must end.

Market analysts interpret this as a signal that regulators may intervene to halt the nearly year-long subsidy battle in food delivery. For Meituan, such regulatory action could significantly reduce future marketing and subsidy expenses for its core food delivery business, directly improving profitability expectations.

Additionally, Meituan is scheduled to announce its financial results tomorrow, March 26. Institutions project Q4 2025 revenue of RMB 921.52 billion, with an expected loss per share of RMB 2.488.