Chinese general merchandise retailing company, Wangfujing and the country’s largest natural rubber manufacturer, Hainan Rubber formed joint ventures to enter Hainan’s offshore duty-free market, taking advantage of a yet to be implemented new tax-exempt policy, according to reports.
The partners are creating two joint subsidiaries, tentatively named as Hainan Haiken Wangfujing Daily Duty Free Commodities Management Co with an investment of RMB 100 million (US$ 15.4 million); and the Hainan Wangfu Jinghaiken Duty-Free Products Co for the development, operation, and management of duty-free items in Hainan.
Hainan Rubber shall own 60% of the shares of Hainan Haiken Wangfujing Daily Duty-Free Commodities Management Co, and Wangfujing 40% of the shares. According to the reports, the joint undertaking will cover wholesale and retail trade duty-free goods, as well as customs supervision of goods storage services.