Stocks associated with Hainan, even those with simply the province in their name, jumped significantly yesterday. Industries from infrastructure, tourism, to real estate were all on the up with the expectation that a free trade zone will bring substantial growth in revenue to Hainan businesses even if it’s still unclear how exactly the new free-trade zone will develop going forward. With Hainan's drive to become an international tourism destination it seems that travel companies, hospitality, and retail companies stand to gain the most.
Such was the speculation that not all of the companies who saw a rise in stock price are directly related to the tourism industry.
The Wall Street Journal noted that “Hainan Yedao Co., China Hainan Rubber Industry Group, Hainan Mining Co., and Hainan Haiqi Transportation Group Co. rose 10% on the Shanghai Stock Exchange minutes after the market opened on Monday.”
It is expected that two of the biggest beneficiaries will be Hainan Haiqi Transportation Group Co. which is involved in passenger travel and logistics, both of which will likely see increased demand in Hainan in the coming years and Hainan Yedao’s specialty food products and liquors which is proving popular with tourists, and of course real estate properties are expected increase in value as well.