China's logistics sector logs 5.8-pct growth in first 11 months

China

China's logistics sector logs 5.8-pct growth in first 11 months

2024-12-29 17:04 Last Updated At：20:57

China's logistics sector has seen a steady increase in demand and continuously improved operations in the first 11 months of the year, thanks to the government's adoption of a series of policies for stabilizing the economy and promoting development, according to the latest official data released by the China Federation of Logistics and Purchasing (CFLP) on Sunday.

In the 11-month period, social logistics rose by 5.8 percent year on year to 320.2 trillion yuan (about 43.87 trillion U.S. dollars), according to the CFLP.

In November, social logistics increased by 5.8 percent year on year, which is 0.1 percentage point higher than the growth rate in October.

In the fourth quarter, logistics demand has seen steady and significant recovery, with the growth rate rising for two consecutive months in October and November, the data showed.

Owing to policies for implementing major national strategies, building up the security capacity in key areas, and upgrading large-scale equipment, the development of various fields, including industries, consumption and import, have accelerated, with the relevant structures continuously optimized.

Many industries including traditional manufacturing and high-tech manufacturing have shown signs of recovery, according to Liu Yuhang, director of China Logistics Information Center.

"Since the beginning of the fourth quarter, the production and business activities of the whole of society have undergone more positive changes. The logistics demands from more industries have picked up, with the demand growth rates of new growth drivers such as new energy manufacturing and electronic devices industries exceeding 20 percent," Liu said. The data showed that in November, more than 80 percent of Chinese industries saw increases in regional and industrial logistics demand.

In particular, the logistics demand growth rates of such bulk commodity industries as chemical, oil refinery and nonferrous metals were over 7 percent, and that of high-tech manufacturing was 7.8 percent.

In the meantime, policies promoting large-scale equipment upgrades and consumer goods trade-ins further unleashed room for the renewal of resources such as automobiles, home appliances and machinery, according to the data.

From January to November, the total logistics volume of renewable resources rose by 8.6 percent year on year, the data showed.

Foreign investors bullish on long-term growth potential of Chinese assets in 2026

As China's stock market continues to rebound, international investors are increasingly recognizing the country's high-quality development prospects, announcing plans to maintain an overweight allocation to Chinese assets in 2026 and step up long-term investment, citing confidence in their innovation and sustained growth.

Global investors are shifting their focus from short-term valuation gains to the long-term growth potential of Chinese assets, as corporate transformation and industrial upgrading accelerate. The steady improvement in corporate fundamentals has become the core driver underpinning foreign investors' bullish outlook.

"In the past, markets mainly focused on relative valuation attractiveness. Now, more and more companies are proving themselves through earnings performance and cash flow. We see continuous improvements in Chinese firms' capabilities in research and development investment, product iteration, and global expansion. Innovation is no longer just about scaling up, but increasingly about efficiency and quality," said Wen Tianna, President of Hong Kong Boda Capital International.

The sustained innovation capacity of Chinese enterprises, coupled with targeted governmental policies, is further amplifying the global appeal of Chinese assets.

"For global investors, Chinese assets offer both high-quality earnings growth and strong macro policy support, making them a core component of global asset allocation," said Wang Xinjie, Chief Investment Strategist of Standard Chartered China Wealth Solutions Department.

Looking ahead to 2026, investment in the AI industrial chain has emerged as a broad consensus. Meanwhile, sectors such as new consumption are also becoming focal points, drawing increasing global attention to opportunities in China.

"Recently, our UBS Greater China Conference in Shanghai attracted more than 3,600 participants. Notably, the number of investors from the United States, Europe, the Middle East, and Africa rose by 32 percent year on year. The surge in Chinese innovation is creating valuable opportunities for global investors to position for high-quality growth," said Xu Bin, Head of Research from UBS Securities.