CTG DUTY-FREE (01880.HK) stock surged 9.01% in intraday trading on Tuesday, reflecting investor enthusiasm over the company's expansion in China's duty-free market. The significant uptick comes as China Travel Service Group announced the opening of Guangzhou's first city duty-free store on August 26, marking a crucial milestone in the company's growth strategy.

The Guangzhou city duty-free store, a joint venture between China Travel Service Group, Guangbai Co., Lingnan Holdings, and Baiyun Airport, represents a major step in expanding the duty-free retail landscape beyond traditional airport and tourist destinations. This development follows closely on the heels of Shenzhen's city duty-free store successfully completing its first transaction during its trial operation on August 23, indicating a growing trend in urban duty-free shopping experiences across China.

Market analysts from CITIC Securities have noted that while the duty-free sector faced challenges in the first half of 2025, with overall sales declining, the industry is showing signs of recovery. The expansion of city duty-free stores is expected to capitalize on tariff policies that give these outlets a price advantage for certain products. Additionally, with Hainan's impending customs closure this year, there's anticipation that offshore duty-free policies will maintain their independence and potentially benefit from post-closure consumption stimulus measures. These factors combined are driving investor optimism in CTG DUTY-FREE's future prospects, as reflected in today's substantial stock price increase.