CTG DUTY-FREE (01880) surged more than 6%, reaching HK$75 by the time of writing, with a trading volume of HK$120 million. The rally follows data from Haikou Customs showing that Hainan’s new duty-free policy for off-island travelers generated sales of RMB506 million in its first week (November 1–7), up 34.86% year-on-year, with 72,900 shoppers, a 3.37% increase.
Founder Securities noted that Hainan’s duty-free sales are showing marginal improvement, supported by recent policy optimizations, signaling a potential industry inflection point. As the sector leader, CTG DUTY-FREE stands to benefit early from the recovery in fundamentals and valuation re-rating.
Additionally, Hainan Free Trade Port is set to begin full island customs closure operations on December 18 this year. China Securities (CSC) highlighted that this move will mark a new chapter in Hainan’s opening-up. The off-island duty-free policy remains a key driver for Hainan’s consumer market, with immediate pickups for local residents and inclusion of international tourists expected to revitalize growth. The integration of inbound/outbound duty-free policies will also resolve bottlenecks for downtown duty-free shops, ushering in a new five-year development cycle for the industry.
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