HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) falls by more than 4%, departure tax refunds have limited impact on duty-free shopping, China-US tariff increases are beneficial for duty-free shopping.

China Tourism Group Duty Free Corporation (01880) fell more than 4%, as of the time of writing, it dropped 3.49% to 54 Hong Kong dollars with a trading volume of 3.74 billion Hong Kong dollars. On the news front, on April 8, the State Taxation Administration issued a notice on promoting the "buy now, refund now" service for overseas tourists to claim tax refunds upon departure, expanding the service from pilot regions to the whole country. Analysts pointed out that the additional tariffs imposed by the US and China are beneficial to duty-free shops, as duty-free items are not affected by the tariff increase, thereby increasing the price advantage of duty-free products. The "buy now, refund now" policy aims to attract foreign tourists to spend in the country, benefiting the retail and travel industries, with limited impact on duty-free stores. Cathay Haitong stated that duty-free shops sell products that are exempt from tariffs, import value-added tax, and consumption tax as well as domestically produced goods that are exempt from or refunded value-added tax and consumption tax entering the duty-free shop for sale. With the background of increased tariffs, the price difference between taxed and duty-free items is expected to widen in the short term, leading to an increase in sales of imported goods from the United States through duty-free channels. However, revenue from the sale of goods from the United States accounts for a single-digit percentage of the company's total revenue, so even with future tariff increases, it will have little impact on the company's operations.