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Meituan’s 500% Estimate Surge May Revive China Delivery Stocks

Bloomberg Markets •
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The latest batch of earnings showed the impact of China’s intense food-delivery price competition is fading more quickly than expected, removing a major drag on sector stocks. Meituan clawed back profits while Alibaba Group Holding Ltd. and JD.com Inc. narrowed losses in their quick-commerce segments as customer discounts eased in the June quarter. Improving profit outlooks may help lure back investors that were scared off by the fierce rivalry amid weak economic conditions.

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