Guo Ji Jin Rong Bao·2025-12-06 15:04Core Viewpoint - The potential exclusion of RiShang Duty Free from the Shanghai airport duty-free bidding process raises concerns about the future of the company and the implications for foreign investment in China [1][2]. Group 1: Company Background - RiShang Duty Free (Shanghai) Co., Ltd. was established in June 1999 and is recognized as the first foreign enterprise operating airport duty-free shops in China [1]. - The company has been a prominent player in the Chinese airport duty-free market, ranking among the top 10 global travel retailers in 2015 and 2016 according to the Moodie Davitt Report [1]. Group 2: Recent Developments - On December 6, 2023, a board meeting was held where the chairman, appointed by the major shareholder China Duty Free Group (CDFG), opposed RiShang Shanghai's participation in the bidding for the Shanghai airport duty-free project [1]. - The bidding process for the Shanghai Pudong and Hongqiao International Airport duty-free shops commenced on November 17, 2023, and is set to close on December 9, 2023 [1]. Group 3: Legal and Regulatory Context - Following the implementation of the Foreign Investment Law in China, RiShang Shanghai is legally qualified to participate in the bidding process, as foreign investment restrictions no longer apply to duty-free operations [2]. - The bidding documents for Shanghai airport reaffirm that capable foreign-invested enterprises can participate, aligning with national laws and agreements with major shareholders [2]. Group 4: Potential Consequences - If RiShang Shanghai is unable to participate in the current bidding, it may lead to the loss of its main business, risking dissolution and affecting thousands of employees and related businesses [3]. - The situation is seen as a significant indicator of the foreign investment environment and the level of institutional openness in China [2].