HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) surged over 6% in the afternoon. The imposition of tariffs by China and the United States is beneficial for duty-free goods, and the company is expected to benefit from the growth in inbound tourism demand.

China Tourism Group Duty Free Corporation (01880) rose over 6% in the afternoon, with a 5.06% increase at the time of writing, reaching 55 Hong Kong dollars, with a trading volume of 417 million Hong Kong dollars. On the news front, Guangzhou has announced 25 measures to nurture and build an international consumption center city, proposing to implement the policy of duty-free shops in the city to promote the opening of duty-free shops in the city as soon as possible and actively expand inbound consumption. Previously, the State Administration of Taxation issued a notice on the promotion of the "buy-now, refund-now" service for overseas tourists' shopping and tax refunds upon departure, clarifying the key points, process, and implementation time of the "buy-now, refund-now" service, and expanding the service from pilot programs in multiple locations to nationwide. Huatai believes that China Duty Free holds 81.74% of the market share in the domestic duty-free market (company website), and its duty-free shops serve as important channels for tourism retail and receiving consumer inflow. The value of the channels can be highlighted, benefiting from the growth in inbound tourism demand, introducing high-quality domestic products to expand the product range, optimizing the consumer experience, and driving business improvement. In addition, Citi Haitong stated that duty-free shops sell duty-free goods that are exempt from customs duties, import value-added tax, and consumption tax for imported goods, as well as domestically produced goods that are subject to refund or exemption of value-added tax and consumption tax sold in duty-free shops. Against the backdrop of increased tariffs, the price difference between taxed and duty-free goods is expected to widen in the short term, with imported goods from the United States likely shifting towards duty-free channels. Additionally, revenue from the sale of imported goods from the United States accounts for a single-digit percentage of the company's total revenue, so even if tariffs are imposed in the future, it will not have a significant impact on the company's operations.