- The 24-year-old A-share company aims to rebrand from landlord to international trade service provider
- IPO proceeds will fund overseas markets and exhibition halls as the group accelerates its “brand going global” plan
Zhejiang China Commodities City Group Co.,Ltd.(浙江中国小商品城集团股份有限公司), the world’s largest wholesale market for small consumer goods, submitted an H-share listing application to the Hong Kong Stock Exchange on May 29, with HSBC and CITIC Securities as joint sponsors.
The company is pursuing a dual “A+H” listing more than two decades after its A-share debut in 2002.
The Hong Kong listing would mark a pivotal step in transforming the firm from a local rental operation into a global trade services player.
The group’s core asset, Yiwu China Small Commodity City, spans over 6.4 million square meters, hosting roughly 80,000 stalls with products sold to more than 230 countries.
Yiwu is popularly known as the world marketplace for small consumer products.
Rental income underpins the business, with occupancy rates consistently above 98% and gross rental margins around 80%.
In 2025, the company posted revenue of 19.93 billion yuan ($2.95 billion) and net profit of 4.20 billion yuan, both record highs.
Beyond ‘landlord’
Yet Yiwu Small Commodity City is seeking to go beyond “landlord” status. Its digital trade platform Chinagoods reached a gross merchandise value of 65 billion yuan in 2025.
Additionally, cross-border payment service YiPay opened accounts for over 25,000 merchants, and the AI-driven “World Yiwu” platform launched 14 core applications.
However, the trade service segment still accounts for less than 10% of revenue, while nearly half of revenue comes from product sales with a gross margin of just 0.7%.
Aiming for global expansion
IPO funds are targeted at global expansion. By the end of 2025, the commodities hub had launched 78 overseas projects in 36 countries under the so-called “brand going global” initiative, supporting more than 5,000 merchants and generating over 13 billion yuan in annual exports.
The company plans to establish 20 overseas sub-markets and 40 exhibition halls over the next three to five years.
Pivot to service provider
Market observers note the key test will be whether investors embrace Yiwu Small Commodity City as a “digital trade service provider,” potentially unlocking higher valuation multiples.
Its current A-share market cap stands at roughly 69.4 billion yuan, with a trailing price-to-earnings ratio of 15.8.
