By Jiahui HuangChina Tourism Group Duty Free shares jumped after the company signed agreements to lower fees paid by the company to airports in Beijing and Shanghai. The Beijing-based company signed supplemental agreements with the operators of Beijing Capital International Airport, Shanghai Pudong International Airport and Shanghai Hongqiao International Airport to amend the calculation of fees paid by China Tourism Duty Free to the airports, according to company filings on Wednesday. The fees paid to the airports will now depend on whichever is higher between guaranteed sales commission paid to the airport and actual sales commission, effective Dec. 1, China Tourism Group Duty Free said. That's significantly lower than the prepandemic rent level of around CNY3.5 billion for Shanghai Pudong Airport and approximately CNY3 billion for the Beijing Capital Airport, they noted. The new agreement eases rental pressure on China Tourism Group Duty Free given that international passenger traffic is gradually recovering after the pandemic, Guolian Securities said.

Source: Wall Street Journal December 28, 2023 14:48 UTC