Shares of CTG DUTY-FREE surged 10.7% in Hong Kong. The new Hainan offshore duty-free policy has started to show effectiveness, with institutions indicating a potential turning point in the industry.

According to Haikou Customs, in the first week of the implementation of the new Hainan offshore duty-free policy (November 1 to 7), Haikou Customs supervised a total duty-free shopping amount of 506 million RMB and 72.9 thousand shoppers, representing a year-on-year growth of 34.86% and 3.37% respectively. Founder Securities believes that the marginal improvement in Hainan’s offshore duty-free sales and the continuous optimization of duty-free policies indicate a possible turning point for the industry. As a leader in the duty-free sector, CTG DUTY-FREE is poised to benefit from the recovery of fundamentals and valuation catalysts.

Moreover, on December 18 this year, the Hainan Free Trade Port will officially commence island-wide customs operations. CITIC Securities pointed out that with the launch of the customs closure in Hainan, the region is expected to usher in a new chapter of opening up. The offshore duty-free policy remains the core pillar of the Hainan consumer market. The immediate purchase and delivery for island residents and the inclusion of international travelers will spur the recovery and development of offshore duty-free shopping, and the integration of inbound and outbound duty-free policies will unstop the city duty-free shops. The duty-free industry is poised to experience new growth over the next five years.