China backs e-commerce expansion in win for Alibaba, JD.com

Sinotrans

05/03/2015 04:59

BEIJING, March 5 (Reuters) - China will back e-commerce 
development and guide international expansion by Chinese 
internet companies, Premier Li Keqiang said on Thursday, in an 
endorsement for firms such as Alibaba Group Holding Ltd  BABA.N  
and JD.com Inc  JD.O .  
    Addressing the opening of China's annual parliamentary 
meeting in Beijing, Li broadly laid out China's "Internet Plus" 
strategy, which includes promoting cloud computing, online 
banking, mobile internet, along with logistics to help 
e-commerce expansion.  
    He also stressed the need for more state investment in the 
internet sector. 
    "In addition to the 40 billion yuan ($6.38 billion) 
government fund already in place for investment in China's 
emerging industries, more funds need to be raised for promoting 
business development and innovation," Li said.  
    Li's support would benefit Alibaba, the world's largest 
e-commerce company, which is already investing in cloud 
computing and internet finance. Its biggest rival, Beijing-based 
JD.com, has seen its transactions more than treble in its online 
marketplace.  ID:nL4N0W6088  
    Others firms likely to benefit include social networking and 
entertainment company Tencent Holding Ltd  0700.HK  and online 
search firm Baidu Inc  BIDU.O . Both have internet finance 
operations and are expanding internationally. 
    State-backed shipping and logistics firms China Cosco 
 601919.SS   1919.HK , China Shipping Container Lines 
 601866.SS   2866.HK  and Sinotrans  0598.HK , as well as local 
delivery firms YTO Express and S.F. Express, should gain too.  
    Both Li and the National Development and Reform Commision 
(NDRC), in a separate annual report, stressed the need to boost 
the technology industry, at a time of slowing economic growth 
and as China tries to transition into a consumption-based 
economy from its heavy reliance on manufacturing.  
    Li said the world's second largest economy would target 
growth this year of around 7 percent, signalling the lowest 
expansion for a quarter of a century.  ID:nL4N0W70AN  
($1 = 6.2683 Chinese yuan renminbi) 
 
 (Reporting by Gerry Shih; Additional reporting by Brenda Goh in 
SHANGHAI and Beijing Newsroom; Writing by Paul Carsten; Editing 
by Kavita Chandran) 
 ((paul.carsten@thomsonreuters.com; +86 10 6627 1299; Reuters 
Messaging: paul.carsten.thomsonreuters.com@reuters.net / 
Twitter: @PaulCarsten)) 
 
Keywords: CHINA SUMMIT/INTERNET LOGISTICS