China Tourism Group’s Hong Kong listing boosted by key institutional recognition

HONG KONG, CHINA. Hang Seng Index Co is adding China Tourism Group Duty Free Corporation’s (China Tourism Group) H Shares to the Hang Seng Composite Index, China Tourism Group announced today. The corporation is the parent company of the world’s largest travel retailer, China Duty Free Group (CDFG).

The changes will come into effect on 5 December.

H shares refer to shares in companies incorporated in Mainland China that are also traded on The Stock Exchange of Hong Kong. As reported, China Tourism Group (already listed on the Shanghai Stock Exchange) began trading in Hong Kong on 26 August.

Flashback to an historic moment in Chinese travel retail history as China Tourism Group Chairman Peng Hui (third from left) joins in the striking of the ‘Gong’ in the traditional HKEX market-opening ceremony on 26 August

The Hang Seng Composite Index (HSCI), a wholly-owned subsidiary of the Hang Seng Bank of Hong Kong, is regarded as the main indicator of Hong Kong stock market performance. It covers about 95% of the total market capitalisation of companies listed on The Stock Exchange of Hong Kong’s Main Board.

China Tourism Group said that being included in the HSCI can enable a company to gain greater market influence. It can also attract more attention from investment institutions, help the allocation of stock funds, and assist global and local investors to formulate investment strategies, the group noted.

China Tourism Group Secretary of the Board of Directors and Joint Company Secretary Chang Zhujun (pictured below right) said, “The company is honoured to be selected as a constituent stock of the Hang Seng Composite Index.

Senior China Tourism Group Duty Free Corporation management pictured celebrating the offering in August. Left to right are Yu Hui, General Accountant; Wang Xuan, Standing Deputy General Manager; Peng Hui, Chairman of the Board and Executive Director; Chen Guoqiang (Charles Chen), Executive Director and General Manager and President of CDFG; and Chang Zhujun, Secretary to the Board and Joint Company Secretary

“This is a manifestation of the company’s staged achievements since its listing and reflects the capital market’s high recognition of the company’s long-term investment value.

“In the future, the company will continue to adhere to the concept of ‘customer-centric, market-oriented’. It will continuously optimise the value chain with ‘duty free business’ as the core and the industrial chain with ‘travel retail’ as the extension. We will continue to do a good job in business while creating greater value for investors.”

China Duty Free Group President Chen Guoqiang (Charles Chen) delivered an outstanding address at The Trinity Forum in Singapore this month. He then joined in a compelling panel discussion (below) with fellow business leaders Dubai Airports CEO Paul Griffiths (second from left) and Global SK-II CEO Sue Kyung Lee, moderated by The Moodie Davitt Report Chairman Martin Moodie

China Tourism Group H shares have also been included in the MSCI Global Standard Index, MSCI Emerging Markets Index and MSCI China Index. China CDFG H-shares represent the largest market capitalisation among all newly added companies within the MSCI Emerging Markets Index and the MSCI China Index. The transfer results will take effect after the market closes on 30 November.

Previously, on 21, the Shanghai Stock Exchange announced that China Tourism Group’s H shares were included in the Shanghai-Hong Kong Stock Connect list.

In addition, the group’s H shares entered the Shenzhen-Hong Kong Stock Connect list on 19 September. This means that domestic investors who meet relevant qualifications can directly trade the company’s H shares through the Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect channels.

COMING SOON: NEW WONDERS OF THE TRAVEL RETAIL WORLD

The Moodie Davitt Report is delighted to announce ‘The New Wonders of the Travel Retail World’, a duo of landmark publications dedicated to extraordinary projects that have set new benchmarks in the travel retail world.

One is dedicated to the cdf Haikou International Duty Free Shopping Complex, which opened on 28 October in Hainan province, China.

The multi-media, bi-lingual publication is a pioneering joint venture between The Moodie Davitt Report and Hainan Hinews Media Co. For advertising details please contact Irene Revilla at Irene@MoodieDavittReport.com

The other is the Hamad International Airport Expansion in Doha, Qatar, inaugurated on 10 November.

This stunning development is anchored by The Orchard, a 10,000sq m indoor tropical garden with a 268-sqm water feature complemented by a luxury-led commercial offer boasting 65 stores and 35 food & beverage outlets.

Partner with us on WeChat and reach your key Chinese audience in Chinese. Stories related to the China travel retail market are featured each week on The Moodie Davitt Report’s WeChat Official Account. Please scan the QR code to follow us and contact Irene@MoodieDavittReport.com for native opportunities.
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