On July 25th, the Ministry of Commerce stated that it will focus on deepening practical cooperation with financial institutions and expanding high-quality financial services in the field of commerce.
Intelligence Finance APP was informed that on July 25th, the Ministry of Commerce stated that it will focus on deepening practical cooperation with financial institutions and expanding high-quality financial services in the field of commerce. Guided by the cooperation mechanism, financial institutions will be encouraged to increase their support for the commercial sector in accordance with the principles of market-oriented and legal institutionalization, and to develop more specific action plans and better product services to support cross-border trade and investment in combination with their own business development. Cinda Securities believes that with the gradual decline of shipping fees since 22H2 and the cooling of inflation since 23, the low point of the cross-border e-commerce industry has passed and is expected to steadily recover. Relevant symbols: Sinotrans Limited (00598), JD Logistics (02618), Lecang Logistics (02490), ZTO Express-W (02057), YTO International Express (06123).
Recently, the Ministry of Commerce and four other departments jointly issued the "Opinions on Strengthening the Synergy between Commerce and Finance and Providing Greater Support for High-Quality Development of Cross-Border Trade and Investment". Regarding this, the spokesperson for the Ministry of Commerce, He Yongqian, introduced that the "Opinions" focuses on key areas such as stabilizing foreign trade, stabilizing foreign investment, deepening economic and trade cooperation under the Belt and Road, foreign investment cooperation, etc., as well as promoting financing, preventing risks, and improving services. It proposes 11 policy measures in 5 aspects.
Next, the Ministry of Commerce will deeply study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, work with relevant departments to implement the "Opinions", and form a greater synergy to support high-quality development of cross-border trade and investment. On the one hand, it will focus on strengthening close cooperation with relevant departments, strengthening the coordination of trade, investment, and financial policies. It will promote relevant departments to push forward the implementation of the "Opinions" in a coordinated manner according to their respective responsibilities, strengthen the tracking and monitoring of the implementation, and promptly coordinate and resolve difficulties and problems.
On the other hand, it will focus on deepening practical cooperation with financial institutions and expanding high-quality financial services in the field of commerce. Guided by the cooperation mechanism, financial institutions will be encouraged to increase their support for the commercial sector in accordance with the principles of market-oriented and legal institutionalization, and to develop more specific action plans and better product services to support cross-border trade and investment in combination with their own business development.
At the same time, it will promote local commercial authorities to actively explore effective experience and practices. It will communicate policies with local financial departments and institutions, strengthen the sharing of financing information, refine specific supporting measures according to local conditions. Typical experience and practices will be replicated and promoted in a timely manner to play the role of policies.
In China, the cross-border e-commerce industry is developing rapidly, which is not only due to the growth of global demand, but also due to Chinese merchants selling affordable goods. In the price war for consumers who like to buy cheap goods, Chinese manufacturers are offering higher cost-effective goods.
As a global factory, China is expanding its influence in the global e-commerce market and has spawned many cross-border e-commerce platform brands such as Temu of PDD Holdings, Shein, TikTok, and Global Sale. The number of cross-border e-commerce entities across the country has exceeded 1.2 million, and there are more than 2,500 overseas warehouses.
Since the implementation of industry management for cross-border e-commerce by the state in 2015, Guangdong's cross-border e-commerce import and export has soared from 11.3 billion yuan in 2015 to 843.3 billion yuan in 2023, with a year-on-year growth rate of 71.4%, accounting for more than 10% of the total foreign trade in the province and more than 1/3 of the proportion of cross-border e-commerce import and export in the country. In the first half of 2024, the province's cross-border e-commerce import and export reached 427.34 billion yuan, which strongly supported the foreign trade plate.
As of now, Guangdong has built 6 international mail exchange bureaus and 17 international express supervision centers, and Guangdong's international and Hong Kong/Macao/Taiwan express business volume accounts for more than half of the national total, processing more than 1.2 million international parcels per hour. It will accelerate the global layout of overseas warehouses, cultivate 30 provincial-level public overseas warehouses, and support enterprises to build overseas warehouses in the "Belt and Road" and RCEP countries and regions. So far, Guangdong has built a total area of nearly 6 million square meters of various types of overseas warehouses in the world.
Shenzhen has the most cross-border e-commerce entities in the country, and its cross-border e-commerce import and export volume is in a leading position among large and medium-sized cities in the country. The large-scale industrial scale has incubated high-quality service providers such as YiCang, Dianxiaomi, and Lingxing. So far, Shenzhen has 5 national e-commerce demonstration bases, 4 provincial cross-border e-commerce industrial parks, and 25 provincial-level public overseas warehouses. The number of overseas warehouses established and operated by Shenzhen enterprises exceeds 370, and the cumulative area of overseas warehouses exceeds 3.9 million square meters.
Tianfeng Securities stated that the cross-border e-commerce industry is currently facing multiple bullish factors, such as the easing of Sino-US relations and the improvement of industry competition patterns. All of these will be beneficial to China's high-cost-effective products going abroad. In addition, under the multiple bullish factors of supply clearing, demand improvement, and AI empowerment, China, with its advantages of a complete manufacturing supply chain and abundant e-commerce talent experience, is expected to seize the opportunity of the times against the background of a clear increase in cross-border e-commerce space.
Cinda Securities believes that in 2021-22, with the Amazon account suspension event, skyrocketing sea freight charges, coupled with sustained high overseas inflation in 22, declining consumer demand and purchasing power, and cross-border sellers promoting low-priced sales in large numbers, the cross-border e-commerce industry has entered the "internal competition" ecology, with small and medium-sized enterprises facing store closures and bankruptcies, and large enterprises suffering from profit losses. The industry has basically completed a round of reshuffle. Since 22H2, with the gradual decline of sea freight charges and the cooling of inflation since 23, the trough of the cross-border e-commerce industry has passed and is expected to usher in a steady recovery.
Concept companies related to cross-border e-commerce:
Sinotrans Limited(00598): The company’s cross-border e-commerce business volume is expected to reach 204,000 tons in 2023, a year-on-year increase of 52.4%, mainly benefiting from the development of cross-border e-commerce market.
JD Logistics (02618): After launching the "International Express Delivery" service in December last year, JD Logistics further upgraded the service on March 15 this year. It has now realized coverage of collection range for the majority of counties and cities in China, even consumers in Xinjiang and Tibet can still achieve domestic collection and overseas delivery. In addition, JD Logistics further expanded its overseas services. It covers most countries in Europe and America, and can achieve global fastest "3-day delivery".
Lecancio Logistics (02490): Lecancio Logistics is a Chinese integrated cross-border maritime logistics service provider founded in 2004. Its services cover the main links of the cross-border logistics process, including pick-up, warehousing and sorting, customs clearance, cross-border shipping, warehousing transfer and end-to-end distribution. The company has a global logistics network, with a service network covering countries such as the United States, Canada, Mexico, Honduras, Germany, the Netherlands, Belgium, Australia, Vietnam, Japan, and India.
ZTO Express (02057): ZTO Express provides express delivery services from China to various parts of the world, including international transportation of documents, samples, and bulk goods. These services usually include customs clearance, international transportation, destination country delivery, and other links. In order to improve logistics efficiency and customer experience, ZTO Express has set up overseas warehouses in some key international markets. These warehouses can be used for storing goods, realizing localized distribution, shortening delivery time, and reducing transportation costs.
YTO International Express (06123): Relying on the "Oriental Land Harbor", YTO Commerce builds a commercial service platform, goes directly to the overseas supply base, and provides global direct procurement, cross-border logistics, commodity terminal sales and other services.