Changes in Hong Kong stocks | China Exemption (01880) rose more than 6% in the afternoon. The additional tariffs imposed by China and the US are beneficial to tax exemptions, and companies are expected to benefit from increased demand for inbound travel

The Zhitong Finance App learned that the China Free Tax Service (01880) rose by more than 6% in the afternoon. As of press release, it had risen 5.06% to HK$55, with a turnover of HK$417 million.

According to the news, Guangzhou announced 25 measures to cultivate and build an international consumer center city, proposed implementing the city's duty-free shop policy, promoting the opening of duty-free shops in the city as soon as possible, and actively expanding inbound consumption. Earlier, the State Administration of Taxation issued the “Notice on Promoting the “Buy and Refund” Service Measures for Overseas Travellers Shopping and Departure Tax Refunds, which clearly stipulates the main content, processing procedures and implementation time of “buy and refund” for departure tax refunds, and piloted this service measure from many places to the whole country. Huatai Securities believes that China Free holds 81.74% of the domestic duty-free market share (the company's official website). As an important window for travel retail and the return of consumption, its channel value has been highlighted. It is expected to benefit from increased demand for inbound tourism, introduce a matrix of high-quality domestic products to expand the consumer experience, and drive upward business recovery.

In addition, Cathay Pacific Haitong Securities said that duty-free goods sold at duty-free shops include imported products that are exempt from customs duties, import value-added tax, and consumption tax according to regulations, and domestically produced products sold at duty-free shops with VAT refunds (exemptions). In the context of rising tariffs, taxable and duty-free price spreads are expected to widen in the short term, and sales of imported goods originating in the US are expected to lean towards duty-free channels. At the same time, sales revenue from imported goods originating in the United States accounts for a single-digit ratio of the company's total revenue, and even the subsequent imposition of tariffs will have no significant impact on the company's operations.