Shenzhen limits Hong Kong visits to once per week to curb parallel trading

HONG KONG - In an effort to combat the phenomenon of “parallel trading” – where products are purchased in Hong Kong and resold at a profit in the Chinese mainland – the Shenzhen municipal government has received approval from China’s State Council to issue a new policy limiting its permanent residents to once-a-week visits to the former British colony.

But despite the policy being formally announced, no date has been given when the change will come into effect. A Hong Kong Government source said the restriction on visitors would lead to 4.6 million less visitors per year entering the territory, as well as helping to crack down on parallel traders.

Residents of Sheung Shui, an area of Hong Kong’s new territories that is close to the Chinese border, say that parallel trading has pushed up retail prices and negatively impacted their daily life, while importers argue that the presence of the traders retains a positive influence on the Hong Kong economy.

HK-Mainland tensions have been on the rise over the past 6-8 months, with the former British colony receiving a consistently massive influx of Mainland residents – often leading to (sometimes violent) protests targetting mainland Chinese shoppers. www.webershandwick.cn (ATI).