Alibaba’s logistic arm Cainiao announced that it had launched a next-day delivery service with guaranteed compensation for late delivery in Hong Kong. Following this move, packages dispatched from mainland China through Cainiao’s distribution center can be delivered to designated pick-up points or directly to customers in Hong Kong within a maximum of two days. If the delivery is not completed within the promised time, Cainiao will initially compensate up to 60 yuan ($8.4) for each order. In the first half of 2023, the volume of packages shipped to Hong Kong increased by over 20% compared to the same period last year, according to the company’s announcement. Since 2018, Cainiao has built a comprehensive self-operated logistics network in Hong Kong, comprising 11 distribution centers, over 750 Cainiao pick-up points, trans-regional transportation trunk lines, and local delivery fleets. Currently, Cainiao is also piloting a local B2C (business-to-customer) delivery service in Hong Kong, which may become a significant focal point for future business expansion. [Cainiao announcement, in Chinese]