HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) rose over 4% in early trading. The closing of Hainan's borders is expected to catalyze the duty-free industry.

China Tourism Group Duty Free Corporation (01880) rose by over 4% in the morning session, with a 4.81% increase as of the time of writing, at HK$76.3, with a turnover of HK$1.48 billion. In terms of news, the Hainan Free Trade Port will officially start island-wide customs closure operations on December 18 this year. China Tourism Group Duty Free Corporation stated that the current 45 categories of goods eligible for duty-free on departure from the island have been included in the "Hainan Free Trade Port Imported Taxable Goods Catalogue." Therefore, after the customs closure, the entire duty-free system in Hainan Island will continue to operate under the current situation for a certain period of time. The number of travelers and business travelers is expected to continue to increase with the construction of the free trade port, and consumers benefiting from the high proportion of duty-free industry services. Orient pointed out that the duty-free shopping atmosphere in Hainan Island is recovering. From November 1-7, the amount of duty-free shopping in Hainan Island was 506 million yuan, with 72,900 shopping visitors, representing increases of 34.86% and 3.37% respectively compared to the same period, which is believed to be due to a low base, new policies on duty-free shopping on the island, large-scale events such as concerts, and promotional efforts. In addition, the "discouragement" of Japanese tourists is expected to drive some overseas shopping demand back, combined with the wealth effect of the stock market this year, the winter tourism in Hainan and duty-free sales are expected to benefit.