Group 1 - The policy of "one line open, two lines controlled, and free within the island" will be officially implemented, significantly increasing the proportion of imported "zero tariff" goods from 21% to 74%, enhancing trade freedom between Hainan and foreign countries while maintaining efficient connectivity with the mainland [1] - Xingtong Co., Ltd. has proactively established a wholly-owned subsidiary, Xingtong Shipping (Hainan) Co., Ltd., in June 2022, with a registered capital of 250 million RMB, to capitalize on the Hainan Free Trade Port policy [1] - Xingtong Shipping (Hainan) primarily engages in international bulk liquid hazardous goods transportation and has established 10 wholly-owned subsidiaries in Singapore and Hong Kong, with a total registered capital of approximately 160 million RMB, forming a global operational network [1][2] Group 2 - Currently, Xingtong Shipping (Hainan) and its subsidiaries operate 8 chemical tankers with a total deadweight tonnage of 130,600 tons and a total investment of about 1.3 billion RMB, focusing on international liquid chemical transportation across various regions [2] - The company has established stable partnerships with key local enterprises in Hainan, such as China National Offshore Oil Corporation and Yisheng Dahu Chemical Co., Ltd., which lays a solid foundation for business expansion post-closure [2] - With the upcoming closure operation of Hainan Free Trade Port, the company anticipates increased shipping demand due to more international trade and investment, and plans to leverage its platform to enhance profitability and market share in the international shipping sector [2]

Report Summary 1. Report Industry Investment Rating - No information provided on the industry investment rating [N/A] 2. Core View of the Report - The stock indices closed higher today. The CSI 500 and CSI 1000 indices, after yesterday's adjustment, were relatively strong and hit new highs for the year. The trading volume in the two markets decreased slightly but remained at a relatively high level for the year. Affected by the news that Hainan Free Trade Port will start the full - island customs closure operation on December 18 this year, related concept sectors such as free trade zones and duty - free shops led the gains. In terms of futures basis, the basis of each variety contract increased today, and the open interest also increased, indicating that bulls entered the market. With the current news being relatively calm and the market sentiment remaining optimistic, it is expected that the stock indices will continue to operate strongly [6] 3. Summary by Relevant Catalogs Market Review - The stock indices closed higher today. Taking the CSI 300 index as an example, it closed up. In terms of capital, the trading volume in the two markets decreased by 1.9894 billion yuan. The stock index futures all rose with increased volume [4] Important Information - Approved by the Party Central Committee, Hainan Free Trade Port will start the full - island customs closure operation on December 18 this year. A series of policy measures will be implemented on the day of the full - island customs closure. Among them, the proportion of the tax items of "zero - tariff" goods imported from the "first line" will be increased from 21% to 74%. These goods can circulate within the island among beneficiaries without import tax, and those with a processing value - added of 30% can be sold to the Chinese mainland duty - free [5] Strategy Recommendation - Hold long positions and wait and see [7] Futures Market Observation | | IF | IH | IC | IM | | --- | --- | --- | --- | --- | | Main contract intraday change (%) | 0.76 | 0.50 | 1.72 | 1.84 | | Trading volume (10,000 lots) | 11.4133 | 5.3842 | 9.5468 | 20.5106 | | Trading volume change compared to the previous day (10,000 lots) | - 1.6976 | - 1.3034 | - 0.9753 | - 0.6634 | | Open interest (10,000 lots) | 27.1368 | 10.0891 | 22.9789 | 33.8313 | | Open interest change compared to the previous day (10,000 lots) | 0.2311 | 0.0135 | 0.1553 | 0.0035 | [7] Spot Market Observation | Name | Value | | --- | --- | | Shanghai Composite Index change (%) | 0.65 | | Shenzhen Component Index change (%) | 1.21 | | Ratio of rising to falling stocks | 4.80 | | Trading volume in the two markets (100 million yuan) | 18447.06 | | Trading volume change compared to the previous day (100 million yuan) | - 198.94 | [8]

Core Viewpoint - The official announcement of the full closure operation of Hainan Free Trade Port is set for December 18, 2025, marking a new phase in the port's development and a long-term task for continuous advancement [1][2]. Group 1: Full Closure Operation - The full closure operation is a significant milestone in the construction of Hainan Free Trade Port, aimed at further expanding openness and enhancing international connections [2]. - The closure will establish Hainan Island as a special customs supervision area, implementing a policy characterized by "one line open, one line controlled, and free flow within the island" [2][3]. - The closure is expected to facilitate the attraction of global quality resources and promote high-quality development of Hainan Free Trade Port [2]. Group 2: Policy Measures - The implementation of a more favorable "zero tariff" policy will increase the proportion of zero-tariff goods from 21% to 74% for imports from the "one line" [3]. - Trade management measures will be relaxed, allowing for open arrangements for certain previously prohibited or restricted imports [3]. - More convenient passage measures will be established, including the use of eight open ports as "one line" ports and ten "two line" ports for innovative passage measures [3]. Group 3: Trade Management and Transparency - The introduction of a "prohibited and restricted import and export goods list" aims to enhance the transparency of trade management [4][5]. - The list will allow for the relaxation of management measures on certain imported goods, significantly increasing the openness of trade [5]. - The list will also facilitate the import of old mechanical and electrical products, covering about 80% of those previously under import license management [5]. Group 4: Future Development Directions - The National Development and Reform Commission will continue to improve the policy system in line with high-level free trade port standards, focusing on trade management, investment environment, and financial policies [6][7]. - Measures will include expanding the range of zero-tariff goods, enhancing the investment environment, and establishing a more open shipping system [6][7]. - The development of a cross-border data flow mechanism will be prioritized, promoting the growth of the digital economy [7].

Core Viewpoint - The establishment of the Hainan Free Trade Port's closure date on December 18, 2025, marks a significant milestone in China's commitment to further opening up its economy and enhancing the attractiveness of Hainan as a global investment destination [1][3]. Group 1: Impact of Closure on Hainan Free Trade Port - The closure will transform Hainan into a "domestic outside" area, allowing for "zero tariffs" and other preferential policies, signaling China's determination for openness [3]. - The closure is a phased approach, maintaining the overall logic of "first line" opening, "second line" monitoring, and free internal systems [3]. - The customs will implement precise regulation with lower intervention, indicating a significant change in regulatory practices [3]. Group 2: Flow of Capital, Talent, and Data - Cross-border capital flow will rely on multi-functional free trade accounts, while talent movement will be facilitated by visa-free policies [4]. - Data flow will be managed through a list-based approach, allowing for cross-border interaction, enhancing the business environment for domestic and international entrepreneurs [4]. - The "zero tariff" and processing value-added tax exemption policies are expected to attract manufacturing industries, although Hainan may not be suitable for long industrial chains in the short term [4]. Group 3: Development of Key Industries - The four main industries in Hainan—tourism, modern services, high-tech industries, and tropical agriculture—account for 67% of the province's GDP [5]. - Hainan has advantages in deep-sea technology, particularly in deep-sea exploration, but should focus on local assembly and testing rather than the entire industrial chain [5]. - Hainan is better suited for specific high-tech industries like deep-sea technology and biomedicine, rather than long industrial chains [5]. Group 4: Expansion of Zero Tariff Products - The range of "zero tariff" products is expected to expand from 1,900 to approximately 6,600 items, covering about 74% of all product categories [6]. - Further expansion of the tariff list will depend on policy implementation and subsequent risk assessments, particularly in the service trade sector [6]. Group 5: Consumer Attraction and Market Expectations - The increase in "zero tariff" products is likely to boost consumer spending in Hainan, although high-end luxury goods will still be subject to offshore duty-free policies [7]. - The combination of offshore duty-free and "zero tariff" policies is expected to significantly enhance consumer activity in Hainan [7]. - There are expectations for greater initiatives in trade facilitation and the development of high-end services, including technology research, high-end healthcare, and modern finance [8].

Core Points - The full island closure operation is a landmark project for the construction of Hainan Free Trade Port, symbolizing a significant step towards further opening up the economy [1] - The closure is scheduled to officially start on December 18, 2025, coinciding with the anniversary of China's reform and opening-up policy, showcasing China's commitment to high-level openness [1][2] Group 1: Closure Operation Details - The closure refers to establishing Hainan Island as a special customs supervision area, implementing a policy characterized by "one line open, one line controlled, and free flow within the island" [2] - The "one line" open policy allows for free and convenient entry and exit between Hainan Free Trade Port and other countries, while the "two line" controlled policy manages the flow between Hainan and the mainland [2] - The closure will enhance Hainan's connectivity with the international market, facilitating the attraction of global quality resources and promoting high-quality development of the Hainan Free Trade Port [2] Group 2: Customs and Trade Management - After the closure, most goods and personnel will continue to be managed under current regulations, with minimal changes to the entry and exit processes [3] - For goods requiring inspection, measures will be implemented to ensure efficient customs clearance, including relocating certain inspections to avoid congestion [3] - The customs authority has developed a regulatory framework to ensure safe and efficient management of goods entering and exiting the Hainan Free Trade Port [3][4] Group 3: Tax Policy Changes - The "zero tariff" policy is a key feature of the Hainan Free Trade Port, with significant expansions planned for the range of goods eligible for this policy [5][6] - The number of "zero tariff" items will increase from 1,900 to approximately 6,600, covering about 74% of all goods, representing a nearly 53 percentage point increase [7] - The scope of beneficiaries will expand to include various enterprises and non-profit organizations with actual import needs, allowing for greater flexibility in the circulation of imported goods [7]

Group 1 - The implementation of new policies in Hainan Free Trade Port is expected to inject strong momentum into regional economic development and promote high-quality growth [1] - Hainan Mining Co., Ltd. is leveraging tax incentives and cross-border financial innovations to drive industrial upgrades and establish a new development pattern [1] - The existing capacity of Hainan Strait Shipping Co., Ltd. is sufficient to handle the expected increase in vehicle and passenger flow following the operation of Hainan Free Trade Port [1] Group 2 - Hainan Airport Facilities Co., Ltd. has formed a special team to conduct pressure tests, team building, and personnel training to enhance the standardization and efficiency of Hainan Free Trade Port's construction [2] - Caesar Travel Co., Ltd. has completed acquisitions to enrich its coastal boutique tourism business and accelerate market layout in Hainan [2]

Core Viewpoint - The Hainan Free Trade Port will officially start its closed operation on December 18, 2025, marking a significant milestone in China's efforts to expand its openness and implement liberalization policies [1] Group 1: Policy Implementation - The closed operation will feature a policy framework characterized by "one line" for openness, "two lines" for management, and free flow within the island [1] - The "zero tariff" policy for imported goods will increase from 21% to 74% of the tax categories, allowing for tax-free circulation among eligible entities within the island [2] - Trade management measures will be relaxed, allowing for open arrangements for certain previously restricted imports [2] - Ten "second-line" ports will be established to facilitate the passage of goods into the mainland, enhancing efficiency [2] - A precise regulatory model will be implemented to ensure low intervention and high efficiency for "zero tariff" goods [2] Group 2: Economic Development - The closed operation is expected to attract global resources and promote the development of key industries such as tourism, modern services, high-tech industries, and tropical agriculture [3] - The initiative aims to create a modern industrial system with unique advantages for Hainan, focusing on enhancing productivity and innovation [3] - The government plans to expand the scope of the "zero tariff" policy significantly, increasing the number of tax categories from 1,900 to approximately 6,600, covering 74% of all goods [4] - The policy will allow for free circulation of "zero tariff" goods among various entities, enhancing the competitiveness of local industries [4]

Core Viewpoint - The Hainan Free Trade Port will officially start its full island closure on December 18, 2025, marking a significant transformation in its operational phase and enhancing its role in China's high-level opening-up strategy [1][3]. Group 1: Significance of the Closure - The closure is seen as a landmark project that signifies the transition of Hainan Free Trade Port from an initial stage to substantial operational capabilities, especially in the context of rising trade protectionism and unilateralism globally [1][3]. - The closure will facilitate a more convenient connection between Hainan and international markets, promoting the gathering of global quality resources and contributing to high-quality development of the Hainan Free Trade Port [3]. Group 2: Policy Framework - The closure will establish Hainan as a "borderless" zone, allowing for zero tariffs and other preferential policies, with a focus on a system characterized by "one line open, one line controlled, and free flow within the island" [1][2]. - The proportion of goods enjoying zero tariffs has increased from 21% to over 70%, enhancing resource allocation efficiency [2]. Group 3: Implementation Readiness - The necessary policies and supporting documents for the closure have been completed, including the import tax item catalog and the list of restricted goods, with hardware facilities passing national inspections [3][4]. - Comprehensive pressure tests are being conducted to ensure effective management post-closure, balancing openness with regulatory control [3]. Group 4: Travel and Trade Impact - Travelers will not require additional documentation to enter or exit Hainan, maintaining current travel convenience while enhancing the overall travel experience [4][5]. - The annual duty-free shopping limit for travelers is set to increase to 100,000 yuan, which is expected to boost consumption [5]. Group 5: Taxation and Trade Facilitation - The zero-tariff system will be a core feature of the Hainan Free Trade Port, with the proportion of zero-tariff goods expected to rise to 74% post-closure, significantly increasing from the previous 21% [6][8]. - The policy changes will lower production costs for market entities and stimulate market vitality, enhancing the level of trade liberalization and facilitation in Hainan [8]. Group 6: Strategic Development - The combination of zero tariffs and the policy of exempting tariffs on goods with a processing value added of 30% or more is crucial for leveraging the domestic market and establishing Hainan as a key point for domestic and international dual circulation [8][9]. - Hainan aims to develop a preservation and processing base for agricultural products targeting ASEAN markets, enhancing the efficiency of tropical agricultural resources and supporting the goal of becoming a global tropical agricultural center [9].

记者从23日举行的中国国务院新闻办公室发布会上获悉，经中共中央批准，海南自贸港定于今年12月18 日正式启动全岛封关运作。 二是实施更加宽松的贸易管理措施。在"一线"进口方向，对全国现有的部分禁止、限制类进口货物作出 开放性安排。 三是实施更加便利的通行措施。以岛内现有8个对外开放口岸作为"一线"口岸，对符合条件的进口货物 径予放行；设置运行海口新海港、海口南港等10个"二线口岸"，对进入内地的货物创新采取多种便捷通 行举措。 四是实施更加高效精准的监管模式。对"零关税"货物、放宽贸易管理措施货物等实行低干预、高效率的 精准监管，保障各项开放政策平稳落地。有关政策文件稍晚时候将陆续对外公布，并于全岛封关之日起 施行。(完) (责任编辑：王晨曦) 封关是指，将海南岛全岛建成一个海关监管特殊区域，实施以"'一线'放开、'二线'管住、岛内自由"为 基本特征的自由化便利化政策制度。 国家发改委副主任王昌林在上述发布会上介绍，"一线"放开，就是将海南自贸港与中国关境外其他国家 和地区之间作为"一线"，实施一系列自由便利进出举措；"二线"管住，就是将海南自贸港与内地之间作 为"二线"，针对"一线"放开的内容实施精准管理； ...

Core Points - The Hainan Free Trade Port (FTP) is set to officially start its customs closure operation on December 18, 2025, marking a significant milestone in its development [3] - The FTP aims to enhance the convenience of personnel, logistics, capital, and data flows, with 85 countries' citizens eligible for visa-free entry [2] - The current customs closure policies are summarized into four key areas: more favorable zero-tariff policies, relaxed trade management measures, more convenient passage measures, and efficient regulatory models [4] Group 1: Economic Growth and Investment - Hainan has seen an average annual growth of 14.6% in actual foreign investment over the past five years, totaling 102.5 billion yuan [5] - The number of newly established foreign enterprises has increased by an average of 43.7% annually, with 8,098 new companies [5] - Trade in goods and services has grown by 31.3% and 32.3% respectively over the same period [5] Group 2: Policy and Regulatory Changes - The zero-tariff product coverage will significantly increase to 6,600 items under a negative list management system post-closure [8] - The scope of eligible entities for zero-tariff imports will expand to cover all types of enterprises and non-profit organizations with actual import needs [8] - The processing and value-added tax exemption policies will be optimized to encourage enterprise development and extend industrial chains [11] Group 3: Tourism and International Cooperation - Hainan aims to receive 97.2 million domestic and international tourists in 2024, an 8% increase from the previous year, with a doubling of inbound tourists [13] - The province is focused on building an international tourism consumption center, enhancing the travel experience for visitors [14] - Hainan will leverage its FTP status to strengthen cooperation with Arab countries in various sectors, including trade and tourism [11]