HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) rises more than 4% again, Hainan border closure is imminent, institutions say signs of market stabilization in Hainan are appearing.

China Tourism Group Duty Free Corporation (01880) rose more than 4%, rising 3.32% at the time of writing to HK$70.05, with a turnover of HK$263 million. On the news front, on December 18th of this year, the Hainan Free Trade Port officially launched full island closure operations. China Securities Co., Ltd. pointed out that the closure of Hainan is about to be implemented, and Hainan is expected to usher in a new chapter of opening up to the outside world. The offshore duty-free policy is still the core pillar of the Hainan consumer market. Enabling island residents and international tourists to make immediate purchases and withdrawals will promote the recovery and development of offshore duty-free shopping. The opening up of entry and exit duty-free policies will break through the bottleneck of in-city duty-free shops, bringing new development opportunities to the duty-free industry in the next five years. Shenwan Hongyuan Group's research report stated that China Tourism Group Duty Free Corporation's profits were under pressure in the first three quarters, but there are signs of stabilization with monthly sales revenue and market share growth in the core Hainan business. The revenue in the third quarter has also started to rebound. The continued recovery in airport channels and the opening of new large-scale in-city duty-free shops are expected to bring new growth opportunities for the company. In the medium to long term, we are optimistic about the increase in business flows after the island closure in Hainan Free Trade Port construction, as well as the long-term value of the company's "Hainan + airport + online + in-city" overall channel synergy development.