Recently, six departments including the Ministry of Commerce jointly issued the “Guiding Opinions on Better Serving the Real Economy and Promoting the High-Quality Development of E-Commerce.” This document is like a shot in the arm, injecting great impetus into China’s cross-border e-commerce industry.
The policy clearly regards cross-border e-commerce as the key to promoting the high-quality development of foreign trade, from platform construction, logistics guarantee to digital trade innovation, to lay out the future growth track in an all-round way.
The core highlight of this guidance is to systematically build a complete ecological chain for the development of cross-border e-commerce.
First of all, the document emphasizes the need to promote the high-quality development of the cross-border e-commerce comprehensive pilot zone and organize the comprehensive pilot zone to carry out special actions such as brand cultivation, rules and standards construction, and platforms and sellers going overseas.
This means that the country will shift from regional pilots to comprehensive quality improvement, providing a more standardized and efficient development environment for cross-border e-commerce companies.
Secondly, the policy innovatively proposes the development of integration models such as “market procurement + cross-border e-commerce” and “China-Europe trains + cross-border e-commerce”, and requires the enhancement of transportation support capabilities such as shipping, air transportation, railways, and multimodal transportation.
This model innovation will greatly improve the efficiency of Chinese goods going overseas and reduce logistics costs.
The most noteworthy thing is that the document clearly “strongly supports cross-border e-commerce overseas warehouses”, requires the improvement of overseas smart logistics platforms, innovative development of digital trade, and support for e-commerce companies to expand the export of high-quality digital services.
At the same time, e-commerce companies are encouraged to build direct purchasing bases overseas, expand the import of high-quality specialty products, and create an e-commerce “through train” for global goods to enter the Chinese market.
This policy document will have direct benefits for multiple sectors of the A-share market. The following are the core beneficiary companies in each segment:
1. Cross-border e-commerce platforms and comprehensive service providers
These companies are the most direct beneficiaries of the policy and will receive more resource support and market opportunities.
1. Small Commodity City (600415): As the core enterprise of Yiwu Cross-border E-commerce Comprehensive Pilot Zone, the Chinagoods platform operated by the company has become an important cross-border e-commerce infrastructure.
Policies promote the high-quality development of the comprehensive pilot zone, and the company will directly benefit from the increase in platform transaction volume and ecological improvement.
2. Focus Technology (002315): Its Made in China website is one of the earliest B2B cross-border e-commerce platforms in China. The company has deployed nearly 20,000 square meters of overseas warehouses in Los Angeles, USA, and plans to form a North American overseas warehouse network.
The policy’s strong support for overseas warehouses will accelerate the construction of the company’s cross-border logistics system.
3. Cross-Border Tong (002640): As a veteran enterprise in the cross-border e-commerce industry, the company focuses on cross-border exports after divesting its loss-making businesses, and operates Amazon, AliExpress and other platforms through subsidiaries.
Policies to promote brands overseas will enhance the company’s brand premium capabilities.
2. Cross-border e-commerce brand sellers
These companies will achieve continued growth in performance through smoother overseas channels and lower logistics costs.
1. Anker Innovation (300866): A global leader in cross-border consumer electronics e-commerce, occupying a leading market share on Amazon and other platforms.
Brand cultivation actions supported by policies will help companies upgrade from channel brands to omni-channel brands.
2. Zhiou Technology (301376): A leading cross-border home e-commerce company that sells its own products through overseas e-commerce platforms such as Amazon and TikTok.
The overseas warehouse support policy will significantly reduce the logistics costs of the company’s large household products.
3. Jihong Shares (002803): A leader in cross-border social e-commerce, relying on TikTok, Meta and other platforms for precision marketing.
The special actions of e-commerce companies encouraged by the policy to go overseas will bring more traffic dividends to the company.
3. Overseas warehouses and cross-border logistics
This is an area with clear and key support from policies, and related companies will usher in explosive growth opportunities.
1. Lege Shares (300729): The company’s overseas warehouse business revenue has increased to 42.74%, and overseas warehouse revenue in 2024 will increase by 154.76% year-on-year.
The policy’s strong support for overseas warehouses will accelerate the company’s overseas warehouse network expansion.
2. Huamao Logistics (603128): A cross-border e-commerce logistics giant with a market share of about 20%. It is a comprehensive strategic partner with DHgate.com.
The construction of logistics support capabilities promoted by policies will enhance the value of the company’s cross-border logistics services.
3. SF Holding (002352): Provides one-stop cross-border logistics solutions such as international express delivery, overseas warehouses, and supply chain. Ezhou Huahu Airport has become an important cross-border logistics hub.
The construction of multimodal transport support capabilities will strengthen the company’s competitive advantages.
4. Digital Trade and Supporting Services
The policy emphasizes the innovative development of digital trade, and these companies will benefit from the process of trade digitization.
1. Business Bao (002095): A leading comprehensive B2B operator in China, providing digital trade services in the field of raw materials.
Digital trade innovation supported by policies will expand the application scenarios of the company’s service platform.
2. Huasheng Tiancheng (600410): It has in-depth layout in the field of digital trade and provides technical support for cross-border e-commerce.
The digitization of trade promoted by policies will increase the demand for company technology services.
This guidance jointly issued by six departments marks that China’s cross-border e-commerce development has entered a new stage of systematic and high-quality development.
From an investment perspective, policy dividends will be released step by step along the chain of “platform construction – brand overseas – logistics guarantee – digital innovation”.
In the short term, companies related to overseas warehouse construction and logistics support have the greatest performance flexibility; in the medium and long term, platform companies with brand advantages and digital service capabilities have broader room for growth.
Investors can focus on leading companies in each segment. These companies will not only benefit from the overall growth of the industry, but also strengthen their competitive advantages with policy support and achieve continued improvement in market share.
As a new channel for Chinese manufacturing to go overseas, cross-border e-commerce is upgrading from simple export of goods to all-round export of brands, services and standards.
The release of this policy document has accelerated the upgrade process and pointed out a clear investment direction for A-share investors.
