Hong Kong Stocks in Focus: CTG Duty-Free Surges Nearly 6% in Morning Trading Amid Strong Hainan Duty-Free Sales and Market Focus on Consumption Tax Reform

Stock News07-29

CTG DUTY-FREE (01880) shares jumped nearly 6% in early trading on Thursday, currently up 4.64% to HK$53, with a turnover of HK$71.4538 million.

According to data released by the Haikou Customs on the official website of the Haikou Municipal Commerce Bureau, from January to June this year, the Haikou Customs supervised a total of 19.92 billion yuan in Hainan offshore duty-free shopping, an increase of 18.8% year-on-year.

China Tourism Group Duty Free Corporation Limited maintains a strong foothold in Hainan, and analysts at Great Wall Securities believe the company is well-positioned to sustain its leading role in the regional duty-free market and expand its market share. Looking ahead, the brokerage expects that with the high travel season in summer, CTG Duty-Free's performance could improve quarter-over-quarter, supporting a positive outlook for its growth momentum.

Notably, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration recently released an announcement adjusting the battery consumption tax policy. According to a research report from CITIC Securities, this move is a concrete implementation of the requirement to "adjust and optimize the scope and rates of consumption tax" as outlined in the government work report this year, and it also vividly illustrates the progressive approach of consumption tax reform, which proceeds in batches as conditions mature. Looking forward, the report suggests that future consumption tax reform will likely deepen along three key directions: optimizing the scope of taxation, adjusting the rate structure, and advancing the point of collection further down the supply chain.

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