On June 1, a new round of China-UK strategic dialogue officially kicked off.
The dialogue lasted for two days, focusing on five core areas: bilateral trade expansion, cross-border e-commerce cooperation, new energy product exports, optimization of tariff barriers, and cross-border logistics coordination, and reached a number of important consensuses.
This move has brought significant policy benefits to the cross-border foreign trade track. Like a warm breeze, export companies have seen new hope. Order expectations have improved significantly, and related A-share targets have also ushered in repair opportunities.
This dialogue clearly proposed to expand the scale of bilateral trade in industrial products, new energy products, and agricultural products, simplify cross-border customs clearance procedures, support small and medium-sized cross-border export enterprises, and build a normalized trade cooperation mechanism.
As the highest-level economic and trade dialogue between China and the UK this year, it directly benefits domestic export-oriented enterprises and effectively alleviates the market pain points of weak foreign trade demand.
This marks that the domestic and foreign trade track has ushered in an inflection point of marginal recovery, and the current situation of sluggish exports is gradually improving.
From a market perspective, the main focus is on the three core tracks of new energy exports, cross-border e-commerce, and high-end manufacturing exports.
However, traditional low-end foreign trade companies have limited improvement, and it is still difficult to have a big market. Retail investors only need to accurately select the best layout.
The following is an in-depth analysis of the benefit logic of the foreign trade industry chain.
On the new energy export track, China and the UK are focusing on promoting bilateral trade in new energy vehicles, energy storage equipment, and photovoltaic products.
Leading domestic new energy export companies will take this opportunity to open up incremental space in the European market. Overseas orders will continue to increase, and performance expectations will improve significantly.
In terms of the cross-border e-commerce track, the simplification of customs clearance procedures and the reduction of trade barriers have reduced the export costs of small and medium-sized cross-border enterprises.
The profitability of cross-border e-commerce companies such as apparel, home furnishings, and consumer electronics has been improved, and industry prosperity has picked up.
On the high-end manufacturing export track, domestic mechanical equipment and precision manufacturing products have received support from the British market. The share of high-end manufacturing exports continues to increase, and leading companies continue to benefit.
As for traditional low-end processing and low value-added foreign trade companies, due to the lack of policy support, industry improvement is weak and it is difficult to get out of the trend.
For different groups of people, here are practical layout plans.
Short-term investors can focus on low-priced targets in cross-border e-commerce and new energy exports to seize the short-term rebound brought about by favorable policies; mid-term investors can invest in high-end manufacturing export leaders and foreign trade logistics supporting companies, holding them for 3-6 months, waiting for overseas orders to be implemented to realize performance; long-term investors stick to the main line of new energy overseas and seize the long-term dividends of the global layout of domestic new energy.
Novice retail investors can deploy foreign trade cross-border theme funds to diversify individual stock risks and steadily share the benefits of the track’s recovery.
Ordinary people engaged in foreign trade and cross-border business can take advantage of this policy to expand overseas markets and reduce operating costs.
At the same time, we should also remind everyone to avoid risks on the foreign trade track.
The overall global external demand is still weak, and this good news is only a marginal improvement, not a full-scale outbreak. Do not be overly optimistic and pursue higher prices; some foreign trade companies have a long order landing cycle, and short-term performance is difficult to realize quickly, and individual stocks will fluctuate repeatedly; geo-trade frictions still exist, and there are uncertain risks in the foreign trade industry.
Priority will be given to high-quality enterprises with stable overseas orders and core export business.
In general, the opening of the China-UK Strategic Dialogue has given a boost to the cross-border foreign trade track, and the marginal recovery trend of the industry has been established.
By focusing on the three main lines of new energy exports, cross-border e-commerce, and high-end manufacturing exports, and avoiding the weak tracks of low-end foreign trade, we can accurately grasp the current round of foreign trade recovery.
Do you think the foreign trade track can continue to pick up?
Are you more optimistic about cross-border e-commerce or new energy exports?
Welcome to share your views in the comment area!
