Smart Finance APP learned that on November 21, the Ministry of Commerce issued the "Notice on Promoting the Stable Growth of Foreign Trade with Several Policy Measures". It pointed out the need to increase financing support for foreign trade enterprises. The measures also emphasize the promotion of cross-border e-commerce development, including the continued advancement of overseas intelligent logistics platform construction, support for eligible places to explore the construction of cross-border e-commerce service platforms, and providing enterprises with overseas legal, tax resources, and other related services.

The "Notice" points out that the Export-Import Bank of China should strengthen credit support in the field of foreign trade to better meet the financing needs of different types of foreign trade enterprises. At the same time, it aims to promote green trade, border trade, and innovative development of bonded maintenance. Encouragement is given for banking institutions to optimize financial services for foreign trade enterprises in terms of credit, loans, repayments, etc., under the premise of rigorously conducting background authenticity checks, and effectively controlling risks. Financial institutions are encouraged to increase financing support for small and medium-sized foreign trade enterprises based on market-oriented and legal principles.

The "Notice" also directs banking institutions to optimize their overseas layout, enhance service guarantee capabilities for enterprises in developing international markets, strengthen macro policy coordination, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Financial institutions are encouraged to offer more exchange rate risk management products to foreign trade enterprises, helping them enhance their exchange rate risk management abilities.

Regarding specific export commodities, the "Measures" emphasize the need to expand the export of superior characteristic agricultural products, increase support efforts, and cultivate high-quality development entities. It guides and assists enterprises to actively address unreasonable foreign trade restriction measures and create a favorable external environment for exports.

In response, Sang Baichuan, Dean of the International Economics Research Institute of the University of International Business and Economics, stated in a media interview that Chinese foreign trade enterprises, while actively expanding overseas markets, also face challenges such as trade settlement and long fund return cycles. To help reduce risks in overseas markets for enterprises and ensure the normal operation of funds, optimizing financial services for foreign trade enterprises is essential and one of the important measures to alleviate operational pressures and risks for foreign trade enterprises.

With the widespread application of 5G technology and big data, China's cross-border e-commerce industry is flourishing, making it easier for domestic foreign trade enterprises to obtain foreign order information and achieve the "borrowing boats" approach for domestic garments, chemical products, electronic products, and other commodities overseas. China's need for high-quality goods such as Russian flaxseed, Brazilian soybeans, and Australian dairy products has also become more accessible in the domestic market. An increasing number of domestic cross-border e-commerce enterprises are entering foreign markets, offering users comprehensive services such as online payments, free shipping, and virtual malls.

Recently, China's cross-border e-commerce trade has continued to grow steadily, becoming a new channel to promote the high-quality development of foreign trade in China and the transformation and upgrading of enterprises. Preliminary customs data shows that in the first three quarters of this year, the import and export of cross-border e-commerce reached 1.88 trillion yuan, an increase of 11.5% year-on-year, which is 6.2 percentage points higher than the overall growth rate of China's foreign trade during the same period.

Zhu Keli, Executive Director of the China Information Association and Founding Dean of the Research Institute of New Economy, predicts that the trend of China's foreign trade will continue to maintain stable growth in the fourth quarter. With the gradual recovery of the global economy, external demand is expected to continue to warm up. In addition, the implementation of a series of stable foreign trade policies in China will provide strong support for foreign trade growth. Of course, we also need to closely monitor changes in the international trade situation and adjust strategies in a timely manner to ensure the sustained and healthy development of foreign trade.

Haitong Securities released a research report stating that the current development of China's cross-border e-commerce is gradually transitioning from a scattered distribution model to vertical category and branding, becoming an important breakthrough to drive the transformation and upgrading of foreign trade and create new growth points in the new economy. The improvement of policies supporting the development of cross-border e-commerce, the promotion of pilot zone construction, and the continuous release of the demographic dividend of high-quality R&D and brand marketing talent in higher education in China will lead to the inevitable major trend of the future international trade development. The prospects for the development of China's cross-border e-commerce are broad.

Cross-border e-commerce related companies:

Zi Buyu (02420): One of China's largest cross-border e-commerce B2C companies, mainly selling apparel and footwear products through third-party e-commerce platforms and self-operated websites. While consolidating the advantages of core channels, Zi Buyu also focuses on developing new sales channels such as Temu and Tiktok, achieving outstanding phased results. The company's revenue in the first half of the 2024 fiscal year was 1.462 billion yuan, a year-on-year increase of 6.31%; net income was 91.365 million yuan, a year-on-year increase of 789.11%; earnings per share of 0.18 yuan.

EDA Group Holdings (02505): Easy Darun is a B2C cross-border e-commerce supply chain solution provider, offering end-to-end solutions for e-commerce sellers. The company adopts a light-asset model and has established partnerships with over 60 third-party warehousing suppliers, 300 international freight forwarder service providers, marine and air transportation carriers, and 80 local "last mile" fulfillment service providers.

JD.com Group-SW (09618): In the third quarter of this year, JD Logistics further expanded its overseas supply chain network layout by opening self-operated overseas warehouses in the United States and Malaysia. In addition, JD Logistics continues to upgrade its overseas expansion strategy - the 'Global Network Plan.' By the end of 2025, the global overseas warehouse area will achieve over 100% growth, while further expanding the layout and construction of bonded warehouses and direct mail warehouses. In the next 3 years, JD Logistics will also add international routes to Malaysia, Korea, Vietnam, the United States, and Europe.

PDD Holdings (PDD.US): Morgan Stanley analyst Eddy Wang pointed out in the latest research report that Temu's global expansion strategy is at a critical stage, with remarkable market potential and profit prospects. The platform is expected to achieve profitability as early as 2025, with huge growth potential in GMV, expected to reach $130 billion by 2030.

ZTO Express-W (02057): ZTO Express provides express services from China to global destinations, including international transportation of documents, samples, and bulk commodities. These services typically involve customs clearance, international shipping, and delivery in the destination country. In order to improve logistics efficiency and customer experience, ZTO Express has established overseas warehouses in some key international markets. These warehouses can be used for storing commodities, achieving localized delivery, reducing delivery time, and lowering transportation costs.