HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) fell more than 5% in early trading as the Hainan border closure formally took effect. Institutions pointed out that policy dividends will gradually materialize next year.

China Tourism Group Duty Free Corporation (01880) surged 15% yesterday, but fell over 5% in early trading today. As of the time of writing, it has dropped 5.19% to 77.6 Hong Kong dollars, with a turnover of 5.99 billion Hong Kong dollars. On the news front, statistics released by the Haikou Customs on December 19 showed that on December 18, the Hainan Free Trade Port officially commenced island-wide closed-loop operations. On that day, off-island duty-free shopping in Hainan reached 161 million yuan, with 24,800 shoppers and 118,000 shopping items, representing year-on-year increases of 61%, 53.1%, and 25.5% respectively. In addition, the tax-free sales in Sanya exceeded 100 million yuan for three consecutive days from December 18 to 20, with year-on-year growth rates of 45.8% and 47% on December 19th and 20th respectively. Cathay Haitong released a research report stating that with the official launch of the Hainan Free Trade Port island-wide closed-loop operations and the upcoming New Year and Spring Festival holidays, the company is expected to fully benefit from policy incentives and festive consumption boosts. The bank pointed out that considering the closure of the Hainan Free Trade Port on December 18, 2025, the policy incentives will gradually show results, with limited impact expected in 2025 and the main effects to be seen in 2026.