Zhi Tong Cai Jing·2025-11-10 09:24Core Viewpoint - UBS reports that Hainan's offshore duty-free sales reached 506 million RMB from November 1 to 7, marking a 35% year-on-year increase, with 73,000 shoppers, a 3.4% increase year-on-year, driven by new duty-free shopping policies [1] Industry Summary - The Chinese duty-free industry outlook is optimistic, primarily due to new policies in Hainan and a low base effect, with expectations for a positive sales trend in Q4 and accelerated growth from 2026 to 2027 [1] - China Duty Free Group (601888) (01880) is expected to be the biggest beneficiary of the positive trends in Hainan's duty-free sales [1] - Airport duty-free sales are anticipated to recover steadily due to the expansion of duty-free areas and a double-digit growth in international passenger traffic [1] - Policy relaxation, along with increased retail space and product variety, will act as catalysts for growth in China's duty-free sales [1]