Core Viewpoint - The National Development and Reform Commission announced that the specific date for the closure of Hainan Free Trade Port is set for December 18, 2025, following approval from the Central Committee [1] Group 1: Definition and Significance of Closure - Closure refers to establishing Hainan Island as a customs supervision special area, implementing a policy characterized by "one line" opening, "two lines" control, and free movement within the island [2] - The closure is significant as it will enhance Hainan's connectivity with the international community, attract global quality resources, and promote high-quality development of the Hainan Free Trade Port, paving the way for national reform and opening up [10] Group 2: Policy Upgrades - The proportion of zero-tariff goods will expand from 21% to 74%, covering more imported products [11] - Goods with a processing value added of 30% or more can be exempt from tariffs when sold to the mainland [12] - Trade management will be relaxed, allowing for open arrangements for certain currently prohibited or restricted imported goods in the "one line" import direction [13] Group 3: Facilitation Measures - Eight international ports, such as Yangpu Port, will be opened for "one line" imports, allowing eligible imported goods to be released directly [14] - Ten operational ports, such as Haikou New Port, will be established for "two line" imports, implementing a "single declaration, single inspection, one-stop release" process [15] - Smart and precise regulation will be achieved through the use of big data and AI for information sharing and mutual recognition of regulations, with high-credit enterprises facing fewer inspections [16] Group 4: Impact on Individuals - There will be no changes for travelers; no additional documents are required for travel to Hainan, and flights and ferries will continue as usual [17] - The duty-free shopping limit for departing individuals remains at 100,000 yuan per year [18] - Residents on the island will be able to purchase certain "zero-tariff" imported goods [19]

Market Overview - On July 24, stocks related to Hainan and duty-free concepts experienced significant gains, with multiple companies hitting the daily limit, including Caesar Travel, Haixia Co., China Duty Free Group, and others [1] - The Hainan Free Trade Port index rose by 8.81% [2] Event: Hainan's Customs Closure Launch - The Hainan Free Trade Port will officially start its customs closure on December 18, 2025, establishing the entire island as a special customs supervision area [3] - New policies will be implemented upon the closure, including an increase in the proportion of "zero tariff" goods from 21% to 74% [3] Institutional Analysis - The coverage of "zero tariff" goods will expand significantly from 1,900 to approximately 6,600 items, representing a 53 percentage point increase [4] - The beneficiaries of the "zero tariff" policy will now include various enterprises and non-profit organizations with actual import needs, broadening the scope of the policy [4] - Restrictions on the flow of imported "zero tariff" goods will be relaxed, allowing free movement among beneficiaries, which is expected to enhance the competitiveness of local industries [4] - The efficient management model and diverse consumer market in Hainan are anticipated to boost tourism, with the tourism industry expected to benefit from policy incentives [4] - The demand for professional tour guide services and one-stop solutions for international tourists is expected to rise, benefiting travel agencies involved in cross-border tourism [5] - The independent nature of the duty-free policy is likely to remain, with expectations of increased consumption post-closure, aiming for over 60 billion yuan in sales by 2027 [5]

Group 1 - The Hainan Free Trade Port will officially start its customs closure on December 18, 2025, implementing a policy characterized by "one line" open, "two lines" controlled, and free flow within the island [1] - The customs closure aims to create a trade environment that is free and convenient, establishing Hainan Island as a special customs supervision area [1][3] - The closure will not affect travel for mainland residents to Hainan, with no additional documentation required for most goods and personnel entering or leaving the island [3] Group 2 - The duty-free shopping policy will continue, with an annual exemption limit of 100,000 yuan per person for departing travelers, while residents of Hainan will have new opportunities to purchase imported goods tax-free [3] - The "zero tariff" policy will be upgraded, expanding the range of zero-tariff goods from 1,900 to approximately 6,600 items, covering about 74% of all goods [7] - The transparency of goods trade management will improve, with a new list detailing prohibited and restricted import/export items, enhancing the openness of trade [7]

Core Viewpoint - The Hainan Free Trade Port will officially start its customs closure on December 18, 2025, which aims to enhance international connectivity and implement a series of liberalization and facilitation policies [1][7]. Group 1: Customs Closure Definition and Policies - Customs closure refers to establishing Hainan Island as a special customs supervision area, characterized by "one line" being open, "two lines" being managed, and free flow of elements 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 and regions outside China's customs [4]. - The "two lines" managed policy involves precise management of goods entering the mainland from Hainan, with ten designated ports for this purpose [5]. Group 2: Impact on Individuals and Residents - The customs closure will not affect travel for mainland residents to Hainan; most goods and personnel will continue to be managed under current regulations without additional documentation [10]. - The duty-free shopping policy remains in place, allowing residents to purchase imported products duty-free, with an annual limit of 100,000 yuan per person [12]. - Foreign personnel will experience relaxed entry restrictions, with improved temporary entry policies and work visa regulations [14]. Group 3: Opportunities for Enterprises - Enterprises will benefit from new policy incentives, with the scope of zero-tariff imports expanding from 1,900 to approximately 6,600 tax items, covering about 74% of all goods [15]. - The zero-tariff goods and their processed products will be allowed to flow freely among eligible entities without the need to pay import taxes [17]. - The Ministry of Commerce has established a list of prohibited and restricted import goods, facilitating clearer management boundaries for businesses [19]. Group 4: Tax Incentives and Economic Impact - Tax incentives for both enterprises and individuals will be enhanced, with a dual 15% tax rate policy expected to reduce tax burdens significantly [23]. - The cancellation of import license management for 60 old mechanical and electrical product codes will cover about 80% of such products, meeting the needs of Hainan enterprises [21].

Core Points - The official announcement states that the Hainan Free Trade Port will officially start its customs closure on December 18, 2025, allowing for a more favorable "zero tariff" policy on goods [2][3] - The proportion of "zero tariff" goods will increase from 21% to 74%, covering approximately 6,600 tariff items [2][3] - The customs closure is a significant milestone in the construction of the Hainan Free Trade Port and is expected to enhance the level of trade liberalization and facilitation [2][4] Tax and Customs Policy - The new tax policies will be implemented from the date of customs closure, integrating existing "zero tariff" policies into the new framework [3][4] - The processing value-added exemption from tariffs will have lowered thresholds and expanded benefits, catering to the production needs of local enterprises [4][5] - The customs authority will develop a regulatory framework to ensure efficient and precise supervision of goods entering and exiting the Hainan Free Trade Port [4][5] Future Developments - The customs authority will continuously improve the customs supervision model in line with the operational needs of the Hainan Free Trade Port [5] - The Ministry of Finance plans to deepen tax reforms to ensure sustained policy strength and the continuous release of policy dividends [5] - The construction of the Hainan Free Trade Port is viewed as a new starting point for further opening up and enhancing the policy system to align with high-level free trade port standards [5]

Core Viewpoint - The National Development and Reform Commission announced that the specific date for the closure of Hainan Free Trade Port is set for December 18, 2025, which marks a significant step towards enhancing the region's openness and international connectivity [1][9]. Summary by Sections What is Closure? - Closure refers to establishing Hainan Island as a special customs supervision area, implementing a policy characterized by "one line" being open, "two lines" being controlled, and free movement within the island [2]. One Line Open - "One line" refers to the border from overseas to the free trade zone, allowing goods not on the prohibited or restricted import list to move freely, and exempting goods outside the import tax list from import duties [3]. Two Lines Controlled - "Two lines" delineate the boundary between the free trade port and other domestic regions, where goods entering the mainland from Hainan must comply with import regulations and undergo taxation [4]. Freedom Within the Island - Customs will implement low-intervention, high-efficiency precise regulation for enterprises and institutions [5]. - Goods within the island will not have storage deadlines and can be stored at chosen locations [6]. - Goods subject to zero tariffs will be exempt from regular customs supervision [7]. Importance of Closure - Closure does not equate to isolation; it aims to further expand openness, facilitating more convenient connections between Hainan and the international community, which is crucial for attracting global quality resources and promoting high-quality development of Hainan Free Trade Port [9]. Core Contents of Policy Upgrade - The proportion of zero-tariff goods has expanded from 21% to 74%, covering a broader range of imported products [10]. - Enterprises can export goods to the mainland without tariffs if they achieve a processing value-added rate of 30% [11]. - Trade management will be relaxed, allowing for open arrangements for certain currently prohibited or restricted imports in the "one line" direction [12]. - Eight international ports, such as Yangpu Port, will be opened for "one line" imports, allowing eligible goods to be released directly [13]. - Ten operational ports, such as Haikou New Port, will implement "one declaration, one inspection, one release" for "two line" imports [14]. - Smart and precise regulation will leverage big data and AI for information sharing and mutual recognition in supervision, with high-credit enterprises facing fewer inspections [15]. Impact on Ordinary People - Travel remains unchanged, with no additional documents required for trips to Hainan, and flights and ferries operating as usual [16]. - The duty-free shopping limit for leaving the island remains at 100,000 yuan per year [17]. - Residents on the island can purchase certain "zero-tariff" imported goods [18].

Group 1 - The Ministry of Commerce announced that Vice Premier He Lifeng will hold trade talks with the US from July 27 to 30, following the consensus reached during the June 5 call between the two countries' leaders [2] - The National Development and Reform Commission stated that the Hainan Free Trade Port will officially start operations on December 18, 2025 [2] - The Ministry of Public Security emphasized that current "smart driving" systems in vehicles have not achieved full automation, and drivers remain responsible for safety [2] Group 2 - The Dalian Commodity Exchange issued a market risk warning regarding significant price fluctuations in coking coal and other commodities, urging members to enhance risk management [3] - The Supreme People's Court released an interpretation to protect the rights of homebuyers, expanding the scope of protection effective from July 24, 2025 [3] Group 3 - Guangzhou's government released a sports development plan aiming for national leadership by 2030, with goals including a 40% participation rate in sports and a sports industry value added to GDP of 2.2% [4] Group 4 - Han Jian He Shan reported no significant changes in its internal and external operating environment [6] - China Railway Industry confirmed that there are no undisclosed significant matters [7] - Dongfang Electric noted a significantly higher turnover rate than usual, indicating potential trading risks [8] - *ST Zhengping expressed uncertainty regarding participation in the Yaxia Hydropower Project [9] - Huaxin Cement also faces uncertainty in obtaining revenue from the Yaxia Hydropower Station construction [10] - Kailong Co. has uncertainty regarding its involvement in the Yaxia Hydropower Project [11] - ST Xifa, primarily engaged in the beer business, does not involve hydropower projects [12] - Dayu Water-saving stated that its related business does not currently involve the Yaxia Hydropower Project [13] - Liugang Co. has a rolling price-to-book ratio significantly above the average, indicating trading risks [14] - Watson Bio signed a strategic cooperation framework agreement with Yuxi State-owned Capital Operation Company [15] - *ST Zitian faces a potential termination of its stock listing by the Shenzhen Stock Exchange [15] - Beixin Road and Bridge's subsidiary won a highway project worth 1.629 billion yuan [15] - Everbright Bank's stake held by CITIC Financial Assets increased from 7.08% to 8% [15]

Group 1: Hainan Free Trade Port Development - The Hainan Free Trade Port is set to officially start customs closure on December 18, 2025, establishing the island as a special customs supervision area with liberalized policies [3][4] - A series of policies will be implemented, including a "zero tariff" policy for 74% of imported goods, up from 21%, allowing tax-free circulation of goods within the island [3][4] - Trade management measures will be relaxed, allowing for open arrangements for certain currently prohibited or restricted imports [3][4] Group 2: Infrastructure and Urban Development - In the first half of the year, 16,500 urban old residential communities were newly started for renovation across the country [5] - A total of 11,800 kilometers of aging pipelines for water, electricity, gas, and heating have been upgraded, with over 8,000 elevators added [6] - More than 130,000 parking spaces and 1.44 million square meters of cultural and recreational facilities have been newly established [6] Group 3: Weather and Natural Disasters - The national average rainfall since the onset of the rainy season is 303.9 millimeters, which is 6.2% less than the average for the same period [7] - Continuous heavy rainfall has caused road interruptions in several provinces, with efforts underway to restore access [7][8]

Core Points - The Hainan Free Trade Port will officially start its closure operation on December 18, 2025, implementing a policy characterized by "one line" liberalization, "two lines" management, and free flow within the island [1][3] - The proportion of "zero tariff" goods for "one line" imports will increase from 21% to 74%, allowing for tax-free circulation among eligible entities within the island [5][10] - A "one-stop customs clearance" model will be established to enhance efficiency, allowing enterprises to declare goods online in advance [12] Group 1 - The "one line" refers to the liberalization of trade between Hainan Free Trade Port and other countries, while the "two line" involves precise management of trade with the mainland [3][10] - The establishment of "two line" ports will facilitate the movement of goods, items, personnel, and transportation tools between Hainan Free Trade Port and the mainland [8][10] - The closure will not require additional documentation for travel to Hainan, ensuring convenience for visitors [7][8] Group 2 - The policy will include open arrangements for certain prohibited and restricted imports, with ten "two line" ports set up for innovative and convenient passage of goods [5][10] - The management of most goods and all personnel and transportation tools will continue under current regulations, ensuring smooth travel and trade [10][12] - The government will focus on maintaining efficient customs operations and enhancing the travel and shopping experience for visitors to Hainan [12]

Core Points - The Hainan Free Trade Port is set to officially close its borders on December 18, 2025, with policies in place to facilitate travel and trade without requiring additional documentation for business trips or tourism [2][3] - The zero-tariff policy will expand significantly, increasing the number of zero-tariff items from 1,900 to approximately 6,600, covering about 74% of all product categories, which is an increase of nearly 53 percentage points compared to pre-closure [3] - The list of prohibited and restricted import/export goods has been systematically compiled, allowing businesses to clearly understand the management boundaries, with 60 old machinery product codes removed from import licensing requirements [4] Group 1: Policy Changes - The zero-tariff goods will now be managed under a negative list system, replacing the previous positive list, which will enhance the scope of eligible products [3] - The beneficiaries of the zero-tariff policy will expand to include various enterprises and non-profit organizations, not just registered independent legal entities [3] - The restrictions on the flow of zero-tariff goods will be relaxed, allowing for free movement among eligible entities without the need to pay import taxes [3] Group 2: Customs and Regulatory Measures - Customs will implement a dual-line management system, where imports are facilitated while exports are closely monitored, ensuring efficient and precise regulation [7] - The customs clearance process will be streamlined, reducing the number of required declaration items from 105 to 42, enhancing efficiency for businesses [7] - A new "batch export, centralized declaration" model will be introduced, allowing companies to handle export procedures separately from customs declarations [7] Group 3: Taxation and Economic Incentives - The Ministry of Finance will continue to promote tax reforms, including maintaining current corporate and personal income tax incentives to attract high-quality enterprises and talent to Hainan [8][9] - The zero-tariff product range will be continuously expanded, and adjustments to the import tax product list will be made as necessary [9] - Research will be conducted on tax policies for imported goods consumed by local residents, with plans to allow tax-free purchases of certain imported products [9][10]