GTHT released a research report stating that the "Notice on Matters Related to Inbound Port Duty-Free Shops" has been issued, establishing and adjusting a batch of inbound port duty-free shops. These shops will continue to operate at 11 ports, including Haikou Meilan International Airport and Shekou Cruise Center. The establishment of new inbound port duty-free shops is expected to synergize with downtown duty-free shops, jointly expanding the scale of the domestic duty-free market. Recommended stocks: China Tourism Group Duty Free Corporation (601888.SH) and Wangfujing Group (600859.SH); related stock: Zhuhai Duty Free Group (600185.SH). The main views of GTHT are as follows:
The event recently saw the joint issuance of the "Notice on Matters Related to Inbound Port Duty-Free Shops" by the Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration, leading to the establishment and adjustment of a batch of inbound port duty-free shops. Companies eligible to participate in the bidding are those approved by the State Council with duty-free business qualifications, including: China Duty Free Group (CDFG), Shenzhen State-owned Duty-Free Commodities (Group) Co., Ltd., Zhuhai Duty-Free Enterprise Group Co., Ltd., China National Service Corporation for Chinese Personnel Working Abroad, China Hongkong China Travel Assets Management Co., Ltd., and Wangfujing Group Co., Ltd.
The number of inbound port duty-free shops has significantly increased, facilitating tax-free shopping consumption for inbound passengers. This initiative involves newly establishing one inbound port duty-free shop at each of 41 ports, including Wuhan Tianhe International Airport. Among these, after the establishment of the Hengqin Port inbound duty-free shop, resident passengers entering from Macao, China, are permitted to purchase a certain quantity (within 15,000 yuan) of duty-free goods at this port's inbound duty-free shop. Concurrently, inbound port duty-free shops will continue to operate at 11 ports, including Haikou Meilan International Airport and Shekou Cruise Center. The establishment of inbound duty-free shops at three ports—Qingdao Liuting International Airport, Guangzhou East Railway Station, and Jiangmen Port—will be discontinued. Following the relocation of passenger routes from Xiamen Gaoqi International Airport to Xiamen Xiang'an International Airport, the inbound duty-free shop at Xiamen Gaoqi International Airport will cease operations.
Inbound port duty-free and downtown duty-free operations are expected to achieve synergy, jointly expanding the scale of the inbound and outbound duty-free market. According to the "Notice on Improving Duty-Free Shop Policies to Support Consumption Boost" issued by the Ministry of Finance and others, starting November 1, 2025, the range of merchandise categories permitted in outbound port duty-free shops, inbound port duty-free shops, and downtown duty-free shops will be expanded. New categories will include mobile phones, mini-drones, sporting goods, health foods, over-the-counter medicines, and pet food. Passengers will be allowed to place orders at downtown duty-free shops and pick up their goods at inbound port duty-free shops. For cities with downtown duty-free shops that also have an inbound port duty-free shop, if a passenger places an order at the downtown shop and pays and collects the goods upon entry at the port duty-free shop, this will be considered a purchase at the inbound port duty-free shop and handled according to the relevant policies for such shops.
Risk warnings: Policy implementation may fall short of expectations, consumer demand could remain weak, and industry competition may intensify.
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