Chinese tech stocks are still priced like the govt is going to allow them to amass & exploit monopoly power with monopoly "takes rates" like in West. But China's hybrid capitalist-socialist regime discourages monopoly power & excess rents that come at expense of broader society.

China is trying to marry the best of capitalism with the best of socialism. You are allowed to make money. Private incentives are used to drive innovation & efficiency. You're just not allowed to make too much money. If you're profiting at expense of society they will clamp down.

The Chinese recently took a look at drug pricing. They trialed centralized procurement in certain regions. It worked. They rolled it out nationally. In a few years they have taken generic & non-innovative drug prices down 50-95%. They did in few years what West still can't do.

You are not allowed to sustainably exploit monopoly rents like you can in the West. The Chinese identify them, and take actions to remove them, increase market competition, and lower prices for customers. And they usually succeed in doing what they are saying they are going to do

Paying triple digit P/Es for stocks like Meituan, on basis they will monopolize food delivery and jack up take rates, therefore seems a risky bet to say the least. What if the government says, yeah nah sorry you're not making $3 an order. $0.1 is fair. Deal with it.