$CTG DUTY-FREE (01880.HK)$ Hong Kong stocks rose over 7% again, as of the time of writing, priced at HKD 60.75, with a trading volume of HKD 1.247 billion.

In terms of news, the State Administration of Taxation recently released a notice on the promotion of 'immediate purchase and immediate refund' services for Overseas travelers’ shopping tax refunds, clearly specifying the main content, processing procedures, and implementation timeline of the departure tax refund 'immediate purchase and immediate refund,' expanding this service measure from several pilot cities to the entire country. CITIC SEC believes that optimizing policies such as the departure tax refund 'immediate purchase and immediate refund' will help stimulate the growth of inbound tourism and enhance inbound shopping, providing a boost to the domestic Consumer market. Referring to the development of Japan's tax refund-related policies, policy optimization has significantly driven growth in inbound tourism and sales through tax refund channels. According to estimates, the medium to long-term market space for departure tax refunds is vast.

Guotai Haitong Securities stated that the duty-free goods sold in duty-free shops include imported goods that are exempt from tariffs, value-added tax, and consumption tax as required, as well as domestic goods that are exempt from (refund) value-added tax and consumption tax and sold in duty-free shops. Against the backdrop of rising tariffs, the tax and duty-free price differences are expected to widen in the short term, and sales of imported goods from the USA are likely to lean towards duty-free channels. At the same time, the sales revenue from imported goods originating from the USA accounts for a single-digit percentage of the company’s total revenue, so even if tariffs increase later, it will not significantly impact the company's operation.

Editor/Rocky