Core Viewpoint - The duty-free shopping policy in Hainan Free Trade Port is continuously releasing benefits, driving a new wave of consumption in the market [1] Group 1: Sales Performance - On December 18, the first day of the closure, Sanya's total duty-free sales reached 118 million yuan [1] - On December 19, Sanya's duty-free stores achieved a single-day sales of 105 million yuan, representing a year-on-year increase of 45.8% [1] - On December 20, the total sales in duty-free stores reached 108 million yuan, with a year-on-year growth of 47% [1] - Sanya's duty-free consumption has exceeded 100 million yuan for three consecutive days [1]

Core Insights - Hainan Free Trade Port officially launched its customs closure on December 18, 2023, with the duty-free shopping policy being a key initiative to boost international and domestic consumption [1] - The first day of customs closure saw duty-free shopping amounting to 161 million yuan, with 24,800 shoppers and 118,000 items sold, representing year-on-year increases of 61%, 53.1%, and 25.5% respectively [1] - The positive effects of the new duty-free shopping policy were further highlighted on the first day of customs operations [1] Group 1 - CDF Sanya International Duty-Free City introduced various promotions, including 121.8 million yuan in vouchers and exclusive discounts for residents, enhancing the shopping experience for tourists [2] - Tourists, including those from Beijing and Russia, expressed excitement about the enhanced shopping experience and the variety of products available, with many specifically visiting to experience duty-free shopping [2] - The sales department of China Duty Free Group in Sanya prepared for the customs closure three months in advance to ensure a better shopping experience for domestic and international travelers [2] Group 2 - The Hainan customs authority emphasized the popularity of the duty-free shopping policy among the public and implemented innovative measures for efficient operation, including centralized and automated order review and drone delivery [3] - These measures were aimed at ensuring timely availability and efficient distribution of duty-free goods [3]

Core Viewpoint - Hainan has officially launched its full island customs closure operation on December 18, 2025, marking a significant milestone as the "largest free trade port in the world," which symbolizes China's commitment to expanding its openness to the world [1] Group 1: Customs Closure Definition and Implications - Full island customs closure refers to establishing Hainan as a special customs supervision area, implementing a policy characterized by "open on the first line, controlled on the second line, and free flow within the island" [1] - The customs closure is not a lockdown but an expansion of openness, facilitating international connections and attracting global resources to promote high-quality development of Hainan's free trade port [1] Group 2: Key Dates and Symbolism - The choice of December 18 for the customs closure is significant as it coincides with the anniversary of the Third Plenary Session of the 11th Central Committee of the Communist Party of China in 1978, which initiated the reform and opening-up policy [1] Group 3: Operational Changes Post-Closure - The current customs management will remain largely unchanged, with most goods and all personnel and transportation still following existing regulations, ensuring no additional documentation is required for travel to Hainan [2] - The duty-free shopping policy for departing travelers will continue, with adjustments made effective from November 1, allowing "departing and exiting travelers" to enjoy duty-free shopping [2] Group 4: Zero Tariff Policy Expansion - The range of "zero tariff" products will shift from a positive list to a negative list management approach, expanding from 1,900 tariff items to over 6,600 items, covering approximately 74% of all tariff items, an increase of nearly 53 percentage points from before the closure [2] Group 5: Tax Environment and Real Estate - Hainan's low tax rates are designed to be compliant and regulated, distinguishing it from "tax havens" through conditions for benefits, anti-avoidance clauses, transparency, and strict anti-money laundering mechanisms [3] - Real estate policies will still operate within national laws and macro-management frameworks, with ongoing measures to curb speculation and ensure housing demand for residents is met [3] Group 6: Future Development of the Free Trade Port - The free trade port is not fully established yet; the goal is to initially create a policy system focused on trade and investment facilitation by 2025, with a more mature system expected by 2035, and a fully developed high-level free trade port by the middle of this century [3]