Core Insights - The logistics industry in China is showing signs of recovery, with various indices indicating growth and expansion in operations, driven by supportive policies and increasing demand for logistics services [4][6][10]. Industry Performance - The warehouse index for June 2025 stands at 51%, up 0.5 percentage points from the previous month, marking eight consecutive months of expansion [4][6]. - The China Logistics Prosperity Index (LPI) for June 2025 is at 50.8%, reflecting a 0.2 percentage point increase from May [8]. - The express delivery development index reached 458.9 in June, a year-on-year increase of 4.7% [8]. Market Dynamics - The average rental price for warehouses in June is 23.18 CNY per square meter per month, remaining stable, while the vacancy rate increased to 16.46% [12][16]. - In 41 key cities, the average rental price is 23.67 CNY per square meter per month, showing a slight decrease, with a vacancy rate of 15.24% [12][16]. Investment Trends - Three investment events were recorded, primarily focusing on hub-type projects, including the commencement of the SF International Multimodal Hub project [19][20]. - The total investment for the SF project is 1.5 billion CNY, aimed at enhancing logistics and supply chain efficiency [19]. Policy Support - Four key policies were noted, including initiatives to reduce logistics costs and promote cross-border e-commerce [10][11]. - The Anhui provincial government issued guidelines to integrate advanced manufacturing with modern logistics, encouraging the development of smart logistics systems [10]. Company Developments - SF Holdings issued a zero-coupon convertible bond worth 2.95 billion HKD, with proceeds aimed at enhancing international logistics capabilities and optimizing capital structure [22]. - Prologis China announced a mid-term note program of 20 billion HKD to be issued to professional investors [22]. REIT Performance - The rental rates for warehouse logistics REITs generally remain above 90%, with many showing year-on-year increases [24][23]. - The rental rates for the Guangzhou Development Zone project have declined, primarily due to normal lease expirations leading to temporary vacancies [23].

Core Insights - In 2024, China's express delivery volume surpassed 170 billion packages, maintaining its position as the world's largest market for the 11th consecutive year, highlighting the significant environmental impact of packaging materials used in the industry [1] - The shift towards green packaging is driven by policies, corporate initiatives, and technological advancements, with a focus on reusable packaging solutions like circular express boxes to address the challenges of high costs and low recycling rates [1][15] Group 1: Industry Trends - The concept of "gray environmentalism" was introduced by entrepreneur Chai Aina in 2017, emphasizing that packaging should not be single-use but reusable, marking the beginning of a gradual transition towards sustainable logistics [2] - Gray Environmental's first product, made from renewable materials, has attracted significant investment, enabling the deployment of over 10 million circular boxes across China, resulting in a reduction of approximately 160,000 tons of carbon emissions [4][6] - The circular packaging model is gaining traction among major brands like Anta, which has reported significant cost savings and environmental benefits from using circular boxes for short-distance transportation [6][8] Group 2: Challenges and Solutions - The scalability of circular packaging faces challenges such as high initial costs, complex recovery processes, low consumer participation, and data sharing issues among stakeholders [7] - SF Express has been a pioneer in implementing circular packaging, having deployed over 1.4 million circular boxes by 2021, but still faces challenges in user awareness and operational complexity [8][9] - The integration of circular packaging into cold chain logistics has shown promising results, with SF Express reporting significant carbon reductions through the use of reusable cold transport boxes [9][14] Group 3: Corporate Strategies - JD.com has developed a diverse circular packaging system under its "Qingliu Plan," achieving over 70 million uses annually, focusing on product variety and ecological layout [10][12] - EMS is leveraging its extensive network to implement smart reusable packaging solutions, allowing users to easily return packaging through a mobile app [13][14] - The future of circular packaging relies on a collaborative approach among technology, user engagement, and corporate execution to create a sustainable system [14] Group 4: Policy Influence - The development of circular packaging is accelerating due to strengthened policy guidance, with clear targets set for the promotion of reusable packaging [15][16] - The revised "Interim Regulations on Express Delivery" effective June 1, 2025, mandates express companies to establish packaging operation standards and recycling management systems, making circular packaging a compliance requirement [16][17] - Recommendations for effective implementation include creating a shared recovery system, addressing data barriers, and adopting international best practices to support the transition to circular packaging [17]

Core Viewpoint - The recent implementation of the "Express Delivery Temporary Regulations" has initiated a significant transformation towards greener packaging in the express delivery industry, emphasizing the reduction, recycling, and use of environmentally friendly materials in packaging [2][5][6] Group 1: Green Packaging Initiatives - The new regulations, effective from June 1, include a dedicated chapter on "express packaging," mandating the promotion of green, reduced, and recyclable packaging [2][5] - Consumers have noticed a shift in packaging design during the recent "618" shopping festival, with simpler designs and reusable packaging becoming more common [3][4] - Companies like SF Express have developed innovative packaging solutions, such as the lightweight "Feng Tiao Box," which reduces logistics costs by 30% and eliminates the need for traditional ice packs [4][5] Group 2: Industry Impact and Statistics - The State Post Bureau aims for over 95% of e-commerce packages to avoid secondary packaging by the end of 2024, with smart packing technology expected to reduce packaging material usage by 20% [5][6] - There are over 109,000 environmentally friendly packaging companies in China, with Guangdong, Shanghai, Jiangsu, and Shandong leading in numbers, accounting for over 52.1% of the total [5][6] - In 2020, the carbon emissions from express packaging in China reached 23.96 million tons of CO2 equivalent, highlighting the need for sustainable practices [6] Group 3: Challenges and Future Directions - Despite progress, challenges remain, such as high costs of green packaging and the need for consumer habit changes [6] - The comprehensive approach to green packaging involves multiple stakeholders across production, usage, recycling, and disposal, emphasizing the importance of a coordinated effort [6] - Future initiatives will focus on implementing standards and policies to guide innovation in packaging products, technologies, and models [6]

Core Viewpoint - The implementation of the revised "Interim Regulations on Express Delivery" by the State Council marks a new phase in the green transformation of China's express delivery industry, focusing on the greenization, reduction, and recyclability of packaging [1][3]. Government Measures - The revised regulations emphasize express packaging governance, introducing a dedicated chapter on "express packaging" that mandates resource conservation, prevention of excessive packaging, and compliance with national standards [3]. - The new regulations establish a link between regulations and standards, reinforcing the necessity of implementing mandatory national standards and creating a framework for green development involving government guidance, corporate responsibility, industry self-regulation, and public participation [3]. Industry Development - The concept of circular packaging originated in the late 1970s in Europe and has evolved significantly, with companies like CHEP leading the way in pallet and container reuse [5]. - In China, companies such as Grayscale Environmental Protection have pioneered the use of eco-friendly, foldable circular packaging materials, achieving over 11.9 million cycles of reuse [5][7]. - Major players like JD.com and SF Express have also initiated circular packaging projects, with JD.com launching the "Qingliu Box" in 2017 and participating in pilot programs for scalable circular packaging applications [7][10]. Performance of Chinese Express Companies - A report by Baibai in 2024 evaluated the green transformation of e-commerce express packaging, with SF Express scoring 76.5 points, leading the industry, followed by JD.com, Alibaba, and Vipshop [10]. - In 2024, SF Express reduced paper usage by 23,000 tons and plastic usage by 82,000 tons, while recycling nearly 6 billion times through reusable packaging containers [12]. - JD.com has invested in specialized cold chain circular boxes, achieving over 8.5 million uses and reducing carbon emissions by 72,500 tons in 2024 [14]. International Practices - Germany has implemented strict regulations on packaging, requiring companies to register and take responsibility for their packaging from production to recycling, with penalties for non-compliance [16][17]. - Belgium is exploring sustainable packaging solutions through initiatives like the PPWR, which aims to promote reusable and recyclable packaging across EU member states by 2025 [22][23]. Future Trends - The future of circular packaging will rely on global collaboration and technological innovation, with a focus on developing new materials and smart packaging technologies to enhance recycling efficiency and reduce waste [25].