HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) surged over 5% in the afternoon. The company recently acquired DFS Greater China business and introduced LVMH as a new shareholder.

China Tourism Group Duty Free Corporation (01880) rose more than 5% in the afternoon, up 4.85% as of the time of writing, reaching HK$94 with a turnover of HK$207 million. On the news front, on January 21, the Ministry of Finance and four other departments jointly issued the "Notice on Matters Concerning the Entry-exit Duty-Free Shops", proposing to establish one new entry-exit duty-free shop at 41 ports, including Wuhan Tianhe International Airport, and adjusting some entry-exit duty-free shops. China International Capital Corporation pointed out that this move will increase the number of entry-exit duty-free shops in China, expand the coverage, and further facilitate duty-free shopping for entry-exit passengers, further play a role in supporting consumer spending in duty-free shops. In addition, China Tourism Group Duty Free Corporation plans to acquire DFS Greater China Business for US$395 million and introduce LVMH as a new shareholder. Soochow Securities released a research report stating that this acquisition is China Duty Free Group's first cross-border merger and acquisition, which will further strengthen its dominant position in the duty-free market in Hong Kong and Macau, integrate DFS's members, brands, and store resources, expand overseas channels, and promote internationalization strategy. With LVMH as a shareholder and strategic partner, it will help promote further cooperation between its brands and China Duty Free in various channels.