JPMorgan Securities Yao Chen: China's Internet Industry Will Shift from "Subsidy Wars" to Competition Over Profit Margin Optimization and Pricing Power

JPMorgan Securities (China) China Securities Research Department Director Yao Cheng stated that the operational baseline of China’s internet industry will shift from aggressive user subsidies and volume-driven competition to profit margin optimization and value-driven pricing power. In the e-commerce sub-sector, Yao Cheng believes that leading companies demonstrating strict cost discipline and restructuring their organizations towards advertising technology efficiency will benefit. The government’s opposition to irrational, inward-looking competition may reduce marketing and customer acquisition costs. Additionally, cloud operators and comprehensive technology groups, which are favored in enterprise AI, are in a favorable position. (People’s Financial News)