社会服务：完善市内免税店政策，行业迎健康有序发展

Investment Rating - Investment recommendation: Outperform the market (maintained) [7][12] Core Insights - The Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration issued a notice on August 27, 2024, to improve the management of city duty-free shops, effective from October 1, 2024, promoting healthy and orderly development of the industry [11][12] - The new policy aims to enhance the competitiveness of the domestic duty-free market and capture domestic consumers' spending that would otherwise go overseas, especially in the context of weak domestic consumption and the recovery of inbound and outbound traveler volumes to near 2019 levels [12] Summary by Sections Policy Improvement - The new city duty-free shop policy allows travelers with valid exit documents within 60 days to purchase a variety of goods, including food, clothing, accessories, and electronics, without a sales limit, although there are restrictions on duty-free allowances upon entry [12] - The policy encourages the sale of domestic products and sets the pickup of purchased items at the exit quarantine area, requiring travelers to carry items out in one go [12] Market Structure - The policy directly applies to six city duty-free shops operated by China Duty Free Group (CDFG) in major cities like Beijing and Shanghai, with additional shops planned in cities such as Guangzhou and Chengdu [12] - CDFG remains the primary operator in the duty-free market, with a total of 22 cities involved in the new policy [12] Investment Focus - The report suggests focusing on China Duty Free Group as the main beneficiary of the new policy, which is expected to boost market confidence and attract consumer spending back to domestic markets [12] - Additionally, attention is recommended for other duty-free operators like Wangfujing [12]