Operator of China’s Famed Yiwu Market Soars After Signing Up to Alibaba Trade Initiative
Tang Shihua
DATE:  Jun 19 2020
/ SOURCE:  Yicai
Operator of China’s Famed Yiwu Market Soars After Signing Up to Alibaba Trade Initiative Operator of China’s Famed Yiwu Market Soars After Signing Up to Alibaba Trade Initiative

(Yicai Global) June 19 -- Zhejiang China Commodities City Group, which runs the world’s largest small goods wholesale market in Yiwu, hit limit up on the news that Yiwu will become the second Chinese city to take part in Alibaba Group Holding’s Electronic World Trade Platform initiative.

China Commodities’ stock price [SHA:600415] surged by the exchange-imposed limit of 10 percent today to close at CNY5.58 (USD0.79).

The two parties will form a joint venture to build a digital trading infrastructure that will streamline and simplify cross-border e-commerce processes to help the 450,000 traders at the Yiwu Wholesale Market and across the city to participate in global trade, China Commodities said yesterday.

Known as the world capital of small commodities, Yiwu in eastern Zhejiang province is famed world-wide for its massive wholesale market featuring a huge variety of small goods from Christmas lights to shoelaces. Alibaba’s hometown of Hangzhou, which is also in Zhejiang province, was the first city to join the e-commerce giant’s eWTP.

The platform will enable vendors to complete all the necessary import and export procedures in one place, the statement said. It will integrate customs clearance, mobile payment, taxation and supply chain services.

With a registered capital of CNY50 million (USD7 million), the new JV will focus on developing more e-trade routes in Yiwu, innovating trade finance and building a smart logistics hub, the firm said. China Commodities will be the majority shareholder with a 51 percent stake, while Alibaba will hold the rest.

A year ago, the Yiwu municipal government signed an agreement with Alibaba, expressing its willingness to develop an eWTP for the local market, but no details were decided on at the time.

Alibaba launched its eWTP initiative several years ago to help small and medium-sized companies and young people in developing countries to participate in the economic activities of the global market. Malaysia, Belgium and Rwanda are among the other countries that have also signed up.

Editor: Kim Taylor

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Keywords:   Electronic World Trade Platform,Digital Infrastructure,E-Commerce,Joint Venture,Yiwu,Alibaba,China Commodities City Group