KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway
Chinese ecommerce and logistics firms, led by JD.com, are rapidly leasing warehouse space across Europe as Trump’s tariffs push manufacturers to diversify markets. Europe has emerged as the “last major growth frontier” for these firms, triggering a second warehouse boom.
Market Snapshot
UK Take-Up (2025 YTD): >2M sq ft (vs 2.3M sq ft peak in 2021)
JD.com: 900,000 sq ft leased in UK (Coventry DC, Milton Keynes hub, multiple sites)
Other Players: Super Smart Service (Zong Teng Group), Top Cloud Logistics, Daals (furniture retailer)
GLP: 400,000 sq m leased to Chinese firms across UK, Germany, Poland, Italy (past 5 years)
Drivers of Expansion
US Tariffs: Higher barriers to U.S. markets push Chinese exporters to Europe.
Ecommerce Growth: JD.com launched Joybuy in UK, offering discounted goods.
Geopolitical Risks: Supply chain shocks (Suez Canal 2021, pandemic) reinforced need for diversification.
Landlord Demand: Rising inquiries from Chinese groups across UK & continental Europe.
Challenges
UK Vacancy: Highest since 2011, at risk of oversupply after 9.3M sq ft speculative builds in 2024 (Savills).
Competitive Pressure: Increased demand driving up rents across logistics hubs.
Tariff Risks: Europe itself could impose new trade barriers in future.
Manufacturing & Nearshoring Trends
Shein: Major distribution hubs in Wroclaw, Poland.
Auto Suppliers & Furniture Makers: Expanding footprints in Europe.
CTP NV: Asian tenants rose to 20% of activity in 18 months to June 2025 (half Chinese).
Expert Views
Knight Frank: “Europe is the last major market where Chinese firms can expand at speed.”
CoStar: 2025 could be strongest year ever for Chinese warehouse acquisitions in UK.
CBRE: “They’re looking at capturing market share… very quick to act.”
Investor Watch
Logistics REITs/Developers: Beneficiaries include GLP, CTP NV, Savills-covered landlords.
Ecommerce Plays: JD.com, Shein gaining direct-to-consumer traction in Europe.
Risks:
UK oversupply may cap rental growth.
Tariff uncertainty remains a structural headwind.
Competition may squeeze margins for smaller players.
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