Morgan Stanley released a research report stating that the Central Government announced to increase the duty-free shopping allowance for mainland tourists to Hong Kong and Macau to a maximum of 15,000 yuan, which will take effect on July 1. It is expected to help boost the consumption willingness of mainland tourists to Hong Kong and promote the consumption growth of high-priced commodities in the retail market. According to the data of the Hong Kong Tourism Board, the average consumption of overnight and same-day return tourists from Mainland China in the fourth quarter of last year was 6,100 and 1,300 yuan respectively. Morgan Stanley believes that Wharf REIC (01997.HK), Henderson Land (00012.HK) and Link REIT (00823.HK) can all benefit from this.

As for the Macau gambling industry, Morgan Stanley expects that the new measures will help reduce regulatory risks in the industry and improve market sentiment. This is the fourth support policy launched by the central government for Macau this year. Data shows that excluding gambling expenses, the per capita consumption of visitors to Macau in the first quarter of this year was MOP 2,300. It is believed that this number was diluted by a large number of non-gambling visitors, and the new measures can attract more middle and low-end customers to visit Macau.