Many regions in China enjoy RCEP benefits in its first month of effect, with listed companies bracing for new business opportunities
A lorry drives out of the Hong Leng Huor Dry Port on the western suburb of Phnom Penh, Cambodia on Jan. 13, 2022. (Photo by Phearum/Xinhua)
Many regions in China recently reported benefits brought by the Regional Comprehensive Economic Partnership (RCEP) in January, the first month since RCEP took effect, and Chinese listed companies engaging in export business are preparing for taking the new business opportunities brought by RCEP, reported Securities Daily Friday.
On February 14, the Changsha Customs in central China's Hunan Province reported that the province has seen 140 million yuan of export and import goods receive relevant dividends delivered by RCEP in January.
The Changsha Customs has issued altogether 139 RCEP certificates of origin and declarations of origin to export products, involving goods of 138 million yuan and tariff concessions of about 1.656 million yuan. These goods are mainly electrolytic manganese metal, lamps and lanterns, antimony trioxide, and fireworks and crackers.
On the same day, the Chongqing Customs released data showing that 67 RCEP certificates of origin have been issued in January this year, involving export goods of over 55 million yuan. The major export goods include soil conditioner and chemicals.
On February 15, the Fuzhou Customs in east China's Fujian Province reported that it has issued 307 RCEP certificates of origin in January, involving goods of 109 million yuan. These products are mainly agricultural products, footwear products and chemical products.
Yunnan, Guangdong, Sichuan and Hubei provinces and other regions have also organized special meetings to discuss and deploy RCEP-related work and formulated supporting policies and measures.
Southwest China's Yunnan has recently formulated and issued an action plan to deepen the trade cooperation between Yunnan and ASEAN countries and to tap the trading potential between Yunnan and Japan, the Republic of Korea, Australia and New Zealand under RCEP.
Supported by RCEP agreement, a number of enterprises have taken the lead in making gains in the market. Sany Heavy Industry Co., Ltd. (600031.SH) enjoys preferential tariffs pledged in RCEP when exporting excavators to Laos. This is also the case for Hsikwang Shan Twinkling Star Co., Ltd. in exporting antimony trioxide to Japan and Truking Technology Limited (300358.SZ) in exporting pharmaceutical production line to Thailand.
Driven by favorable policies, the exports of Hsikwang Shan Twinkling Star Co., Ltd. to Japan increased by 107 percent year-on-year in January. In the same month, Truking Technology Limited also get a tariff reduction of 178,000 yuan in exporting pharmaceutical production line to Thailand after timely going through relevant formalities.
Listed companies are also exploring potential business opportunities brought by RCEP by using capital market tools to make strategic deployment.
Bafang Electric (Suzhou) Co., Ltd. (603489.SH), a leading manufacturer of e-mobility components and complete e-drive systems based in eastern Chinese city of Suzhou, just started refinancing. The RCEP agreement has reduced tariffs on two wheeled vehicles exported to major Southeast Asian countries, and as "replacing fuel with electricity" accelerates in the Southeast Asian motorcycle market, it is the right time to seize related opportunities, said a source from the company.
"RCEP agreement marks the starting point of a new round of opening-up. The manufacturing industry is picking up at the right time with significant rebound in oil products, ores, coal and containers expected," said a source from Ningbo Zhoushan Port Co., Ltd. (601018.SH).
"RCEP has connected 15 Asia-Pacific economies, covering the world's largest and fastest-growing container transport market. As mutual investment and trade among the 15 countries speed up, RCEP is expected to further improve the demand prospect of the container market within the region," a source from China Merchants Energy Shipping Co., Ltd. (601872.SH) said.
