Chinese duty-free stocks surge on boost from tariff tensions

Shares of Chinese companies that operate duty-free stores jumped on expectation of better consumer demand given that sweeping tariffs may lead to higher prices at mainstream retailers. China Tourism Group Duty Free Corp. shares rose as much as 28% in Hong Kong, the most since Sept. 30. On the mainland, Hainan Haiqi Transportation Group Co., which announced plans to buy the entire stake in Hainan Provincial Duty Free, and Wangfujing Group Co., surged by the 10% daily limit. “Duty-free may benefit from channel shift, theoretically,” Morgan Stanley analysts including Hildy Ling wrote in a note. “This may take place if there are price hikes at other retail channels because of higher tariffs.” President Donald Trump’s so-called reciprocal tariffs have come into effect, with duties imposed on China going as high as 104%. While there’s potential for a prolonged trade war between the world’s two largest economies, Morgan Stanley’s analysts said actual exposure of duty-free retailers to US imports should be low.

Chinese duty-free stocks surge on boost from tariff tensions

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Published April 09, 2025

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Chinese duty-free stocks surge on boost from tariff tensions