Chinese courier YTO Express to launch global expansion from new Hong Kong headquarters
Decision to base international headquarters in Hong Kong follows purchase of majority stake in On Time Logistics, says CEO
Mainland courier YTO Express is set to launch an ambitious global expansion plan from Hong Kong after electing to set up its new international business headquarters in the city.
YTO Express’ decision to use Hong Kong as a springboard to become the leading Chinese courier outside the country follows its purchase of a majority stake in On Time Logistics (OTEL), which is listed in the city.
“Without Hong Kong, it is difficult for Chinese mainland companies to realise globalisation,” said Yu Weijiao, chief executive of YTO Express, on Tuesday. “The headquarters for YTO’s international business will be in Hong Kong.”
Without Hong Kong, it is difficult for Chinese mainland companies to realise globalisation
The Alibaba-backed express delivery firm, which carried out a back-door listing in Shanghai last year,
has set its sights on international expansion with the purchase of 61.87 per cent stake in Hong Kong-based On Time Logistics.
“Acquiring OTEL gives us much easier access to expand our overseas business than building the networks by ourselves,” said Yu. “OTEL will be the sole platform for us to reach global markets in the foreseeable future.
“We see strong growth in China’s cross-border e-commerce business and that is one of the businesses we focus on.”
The size of the China’s e-commerce market is forecast to reach 1 trillion yuan by 2020, “providing a historical opportunity for Chinese logistics companies to expand their global business,” he added.