HK Stock Market Move | MEITUAN-W(03690) rose nearly 7% in early trading. Alibaba said that its investment in Taobao's flash purchase is expected to significantly shrink in the next quarter.

MEITUAN-W (03690) rose nearly 7% in early trading, up 5.85% as of the time of publication, at HK$104, with a turnover of HK$7.823 billion. On the news side, Alibaba Group CFO Xu Hong revealed at the third-quarter earnings conference that the company's investment in Taobao Special Purchases will peak in the September quarter. Xu Hong stated that with the significant improvement in efficiency and unit economic benefits, as well as stable scale, it is expected that investment in the next quarter will significantly shrink. Some analysts point out that Alibaba's statement may mean a "temporary truce." It is worth noting that Meituan is scheduled to hold a board meeting on November 28 to approve quarterly performance. China Securities Co., Ltd. previously released a research report, predicting that Meituan's losses in the food delivery business will peak this quarter; since the fourth quarter, competition intensity has eased, subsidies have gradually returned to rational levels, Meituan's food delivery order volume market share has rebounded, and it is expected that food delivery UE losses are expected to halve. In addition, in the long term, there is considerable profit potential for food delivery going international, which may increase Meituan's valuation flexibility.