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Huarong, Yuantong Invest in CRE
Post Time: 09/10/2017

On the morning of September 30, the operations platform of the China Railway Express (CRE) held a signing ceremony with its new investors—the China Huarong Asset Management Company and Yuantong Express in Hangzhou. This occasion marks the beginning of CRE’s marketization, diversification, integration, and internationalization.

       Liang Liming, vice governor of the Zhejiang Province; Chen Zongyao, deputy secretary-general of the Zhejiang Government; Meng Gang, director of the provincial Commercial Department; Sheng Qiuping, standing member of the provincial Party Committee and secretary of the Yiwu Party Committee; Hu Jiliang, member of the Party Committee, as well as vice CEO of Huarong Company; and Yu Weijiao, chairman of the board, as well as CEO of Yuantong Express, attended the signing ceremony.

       Bai Junjie, president of Huarong; Huang Yifeng, strategic investment director of Yuantong; and Feng Xubin, president of the Yiwu Tianmeng Company, signed the strategic investment agreement together.

       In recent years, Yiwu has sped up the construction of the CRE as a channel for international trade to extend the terrestrial Silk Road, in order to build itself into a pivotal city of the Belt and Road. Since the CRE opened on November 18, 2014, it has undergone vigorous development, and its service coverage has expanded rapidly. Nine transport lines have been opened, including those to Madrid, London, and Prague; goods come from Zhejiang, Shanghai, Guangdong, Anhui, Jiangsu, and three other provinces, covering about 2000 kinds of commodities “made in China,” such as small articles for daily use, clothes, bags, and hardware. There are five logistical distribution points and eight overseas warehouses along the rail, benefiting 34 countries, as well as projects including the China Commodity City-Warsaw Branch and the Great Stone (China-Belarus Industrial Park).

       At present, the CRE has become the international railway with the most transport lines, the highest load efficiency, and the most advanced management model. President Xi Jinping credited it as a crucial bridge for the interconnection of Asia and the European continent and as one of the initial achievements of the B&R. The CRE has also made a significant contribution to the further opening up of Zhejiang.

       Tianmeng Company is the primary operator of the CRE, and it is the only 100% privately owned company in China among a number of enterprises running international cargo trains. Tianmeng has accumulated a large quantity of resources in overseas markets and has demonstrated increasing market competitiveness and comprehensive strength. China Huarong is a large state-owned non-bank financial institution approved by the State Council and held by the Ministry of Finance. It is also an asset management company that boasts the largest asset size, the strongest profitability, the largest realized profit, the best return on equity, the highest market capitalization, complete financial licenses, and a high brand value. Yuantong Express is a leading company in the express delivery industry, with strengths in network layout and market development, and it is a leader in market size in the industry.

       The cooperation between the three sides will restructure the main operators of the CRE, which will be beneficial for the sharing of resources and advantages while consolidating the dominancy of private subjects. This will help Tianmeng transform from a traditional private enterprise into a modern enterprise, which will also have significant meaning for the upgrade of the CRE.

       Next, the three parties will further improve the corporate governance and the main functions of the market, continuously enhance overall operational capacity and market competitiveness, and increase the running time of international cargo trains and the number of overseas service offices, in order to promote the normalization, standardization, and marketization of CRE operations. They will also continue to improve the quality of the development of CRE and to transform it into a strategic hub and a broad channel for international trade along the B&R. (By Jia Yongliang, translated by Luo Shuru, edited by Xiamara Hohman)

 

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