Core Viewpoint - The expansion of China's service industry opening-up pilot program is accelerating, with the recent issuance of a roadmap for nine cities, indicating a significant push towards enhancing service sector openness and reform [1][2]. Group 1: Pilot Program Achievements - The national service industry opening-up pilot program has shown significant results since its initiation in 2015, with 412.6 billion USD in foreign investment absorbed by 11 pilot cities in 2024, accounting for 50.2% of the national total in the service sector [2]. - The new pilot cities, including Dalian, Ningbo, and others, are expected to promote self-directed opening in the service sector, leveraging their unique advantages and focusing on key areas such as telecommunications, healthcare, and finance [2][3]. Group 2: Differentiated Exploration - The pilot cities are encouraged to develop tailored tasks based on their unique resources and industrial foundations, promoting innovation and complementary achievements across regions [3]. - For instance, Ningbo is focusing on technology services and international shipping, while Dalian aims to enhance its role as an international shipping center in Northeast Asia [3][4]. Group 3: Project Implementation for Regional Development - The Ministry of Commerce plans to deepen the service industry opening-up pilot program, coordinating with relevant departments to ensure effective implementation of the pilot tasks and promote project landing to stimulate regional development [6][7]. - The program aims to enhance service consumption, moving from physical goods to services, and to cultivate new development momentum while shaping international competitive advantages [6].

Core Viewpoint - The Ministry of Commerce has issued a comprehensive pilot task for the expansion of the service industry in nine cities, aiming to accelerate the opening up of the service sector in China [1] Group 1: Pilot Tasks and Focus Areas - The pilot tasks include 159 specific initiatives for nine cities: Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi'an, and Suzhou [1] - The focus areas for these initiatives include telecommunications services, healthcare and wellness, trade and tourism, and finance [1] Group 2: City-Specific Support Initiatives - Dalian is supported to leverage its role as a Northeast Asia international shipping center to enhance logistics and transportation channels [2] - Ningbo is encouraged to utilize its advanced manufacturing and cross-border trade advantages to promote the healthy development of new business models in bonded maintenance [2] - Xiamen will focus on facilitating cultural trade and enhancing service trade cooperation with BRICS countries through key parks and platforms [2] - Qingdao aims to strengthen marine technology innovation and conduct trial cruises for non-destination sea routes [2] - Shenzhen is set to optimize and upgrade its free trade account functions and trial electronic bills of lading in shipping and trade [2] - Hefei will deepen reforms in the technology service sector by leveraging its technological innovation and industrial development advantages [2] - Fuzhou will enhance cross-strait economic and trade cooperation, particularly in the areas of livelihood and commerce [2] - Xi'an will implement a trial reform for the property rights of railway waybills and strengthen technology innovation and industrial application [2] - Suzhou will explore the import of materials for biopharmaceutical research and develop efficient and secure mechanisms for cross-border data flow [2]

Core Insights - The Shanghai government is focused on achieving its annual economic growth targets and ensuring a strong finish for the year and the "14th Five-Year Plan" [1] - The establishment of a national blockchain network hub in Shanghai is seen as crucial for enhancing the quality of shipping and trade [2] Group 1: Economic Performance - Since October, Shanghai's economy has shown resilience, maintaining progress despite pressures [1] - Various departments and districts are urged to intensify efforts to achieve growth, reduce declines, and fill gaps to meet year-end targets [1] - Emphasis is placed on supporting key industries and enterprises, particularly in the service sector and major industrial groups [1] Group 2: Blockchain Development - The meeting approved measures to promote blockchain's role in enhancing high-quality shipping and trade [2] - The initiative aims to integrate the real economy with the digital economy and support the establishment of a unified national market [2] - The focus is on leveraging the advantages of blockchain technology, such as traceability and anti-tampering, to streamline policy implementation and enhance efficiency [2] Group 3: Policy and Coordination - There is a call for coordinated efforts between the city and districts, as well as between government and enterprises, to provide targeted support for key companies [1] - The government aims to optimize policy evaluation and enhance the precision and effectiveness of its measures [1] - Planning for the transition from this year's goals to next year's initiatives is emphasized to ensure a solid foundation for the "15th Five-Year Plan" [1]

Core Viewpoint - The Hunan Free Trade Zone's Yueyang area has introduced innovative measures to calculate inland transportation costs, addressing the challenges faced by domestic import enterprises in deducting inland freight from taxable prices, thereby reducing their tax burden compared to foreign trade enterprises [1][2]. Group 1: Main Practices - Scientific calculation of inland freight costs has been implemented, allowing for the separation of international and inland freight costs, which were previously combined, leading to higher tax liabilities for importers [2]. - The declaration process has been simplified by allowing importers to declare inland freight costs based on a unified standard determined by a third-party accounting firm, rather than requiring individual invoices for each shipment [3]. - Enhanced oversight throughout the process includes a commitment system for importers, on-site verification, and regular risk assessments to monitor price fluctuations and ensure compliance [4]. Group 2: Practical Effects - The innovation has effectively reduced costs for enterprises, with savings of 950 yuan per container of frozen meat and approximately 380 yuan per container of grain [5]. - Since the pilot program began in October 2021, 119 enterprises have participated, resulting in a total deduction of inland freight costs amounting to 59 million yuan and tax savings of 7.345 million yuan [5].

Group 1 - The first temporary arbitration case under the revised "Shanghai International Commercial Maritime Temporary Arbitration Promotion Measures" was held at the North Bund International Legal Service Port, involving a shipping company and a trading company over an international container transport contract dispute [1] - The case was resolved in 4 weeks, demonstrating the efficiency of temporary arbitration compared to traditional litigation, which can take 1.5 to 2 years or longer [1] - The trading company representative highlighted the cost savings and efficiency of temporary arbitration, which significantly optimizes the business environment [1] Group 2 - The North Bund Arbitration Service Center was inaugurated alongside the opening of the North Bund International Legal Service Port, featuring shared arbitration facilities and temporary arbitration services [2] - The center has published the "North Bund Temporary Arbitration Service Guidelines (Trial)" and a comprehensive service manual, which includes a list of recommended arbitrators and secretaries trained specifically for this purpose [2] - The shared arbitration court is equipped with advanced technology to support arbitration proceedings, including audio-video systems and translation services [2] Group 3 - The Hongkou District is collaborating with various arbitration, shipping, insurance, and freight forwarding institutions to promote more temporary arbitration practice cases in specific industries [3] - The North Bund International Legal Service Port aims to integrate mediation, arbitration, and court services to facilitate cross-border commercial dispute resolution [3]

Core Insights - The Qianhai Shekou Free Trade Zone has achieved a significant increase in import and export value, reaching 261.37 billion yuan in the first half of the year, a year-on-year growth of 11.5%, making it the leading free trade zone in the Guangdong-Hong Kong-Macao Greater Bay Area, accounting for over 60% of the total import and export value in the region [1] - The zone has been recognized for its trade facilitation innovations, ranking first in the national free trade zone innovation index for four consecutive years [1] Group 1: Trade and Economic Performance - The total import and export value of the Qianhai Shekou Free Trade Zone has increased from 71.2 billion yuan in 2015 to 536.7 billion yuan in 2024, expanding 6.5 times [1] - The Qianhai Free Trade Zone has implemented innovative measures such as "one-time inspection, one-time certification, and integrated passage," enhancing the efficiency of cross-border goods clearance [1] Group 2: Smart Port and Customs Innovations - Shenzhen Customs has focused on smart port upgrades and implemented AI-based intelligent supervision, significantly reducing inspection times for imported fruits and hazardous materials by 30% and 50% respectively [2] - The foreign trade container throughput at the Shenzhen Shekou Port exceeded 8.19 million TEUs in the first half of the year, reflecting a year-on-year increase of 10.7% [2] Group 3: New Business Models and International Competitiveness - The "Bonded+" new foreign trade model has emerged, with the Qianhai Comprehensive Bonded Zone facilitating various aircraft leasing businesses valued at approximately 550 million yuan [3] - Siemens has successfully completed nearly 2,000 repairs of MRI coils at its bonded repair center in Qianhai, with a total import and export value of approximately 9.3 million USD for MRI components [3] Group 4: Trade Relations with Hong Kong - The Qianhai Shekou Free Trade Zone has strengthened trade relations with Hong Kong, with imports and exports to Hong Kong reaching 59.24 billion yuan in the first half of the year, a remarkable year-on-year growth of 90.2% [4] - Hong Kong has become the largest trading partner of the Qianhai Shekou Free Trade Zone, accounting for 22.7% of the total import and export value, an increase of nearly 10 percentage points [4]

Group 1 - The People's Bank of China announced innovative structural monetary policy tools in Shanghai, including the launch of blockchain-based credit refinancing for shipping trade and expansion of carbon reduction support tools [1] - The global merchant fleet's asset size exceeded $3 trillion in 2023, with a ship financing leasing penetration rate of only 18%, significantly lower than the 40% in the aviation industry [1] - RWA (Real World Asset tokenization) serves as a bridge between traditional assets and the crypto economy, providing new solutions for industry pain points through smart contracts [1] Group 2 - Major industry players like COSCO Shipping, CMA CGM, DP World, and Port of Singapore Authority announced the development of blockchain solutions for the maritime industry as early as 2018 [2] - The blockchain credit refinancing business is expected to be promoted nationwide, facilitating more efficient financing services for foreign trade enterprises and promoting the development of the shipping trade industry [2] Group 3 - COSCO Shipping Technology is collaborating with Circle to build a shipping financial blockchain for real-time settlement of global shipping fees in USDC, positioning it as a core strategic vehicle for digital finance [3] - COSCO Shipping Holdings is involved in the operation of GSBN (Global Shipping Business Network), which aims to support trustworthy transactions and seamless cooperation among global trade participants through blockchain technology [3]

Investment Rating - The report maintains an "Overweight" rating for the transportation sector, with specific buy recommendations for several airlines and logistics companies [2][3]. Core Insights - The report emphasizes the ongoing recovery in the aviation sector, driven by increasing passenger demand and favorable pricing dynamics, particularly during the peak travel season [4][5]. - The logistics and express delivery sectors are expected to undergo significant transformation due to advancements in autonomous vehicle technology, which could enhance operational efficiency and service delivery [5][6]. Summary by Sections Investment Highlights - The report highlights the strong performance of airlines such as Spring Airlines, China Eastern Airlines, and China Southern Airlines, which are expected to benefit from rising passenger volumes and improved load factors [2][11]. - The logistics sector is seeing a surge in express delivery volumes, with a reported 41.47 billion packages collected in the week of May 19-25, reflecting a year-on-year increase of 15.42% [5][6]. Operational Tracking - The report provides detailed operational metrics for major airlines, indicating a positive trend in available seat kilometers (ASK) and revenue passenger kilometers (RPK) across the sector, with notable increases in passenger load factors [4][14]. - The logistics sector's performance is also tracked, showing a significant increase in both collection and delivery volumes, which are expected to continue growing due to favorable consumption policies [5][6]. Airline Data Tracking - Specific airlines are highlighted for their operational efficiency and market positioning, with metrics showing improvements in ASK and RPK, alongside rising load factors, indicating a robust recovery trajectory [4][14]. - The report notes that the average load factor for major airlines is above 80%, suggesting strong demand and effective capacity management [4][14]. Shipping Data Tracking - The report indicates a rise in shipping rates, with the SCFI index reaching 2072.71 points, reflecting a week-on-week increase of 30.68% [5][6]. - The report anticipates a seasonal increase in shipping demand, driven by factors such as replenishment needs and peak shipping seasons, which could lead to further price increases [5][6]. Logistics Data Tracking - The report tracks logistics performance, noting a significant increase in freight volumes across various transport modes, including road and rail, with a cumulative freight volume of 2.71 billion tons reported [5][6]. - The express delivery sector is highlighted for its resilience, with ongoing growth in package volumes supported by government consumption-boosting policies [5][6].