Hong Kong: Beijing wants to curb grey market

By

Matthieu Guinebault

Published
Apr 15, 2015

Beijing wants to prevent the resale in Mainland China of products bought cheaply in Hong Kong. Newly taken measures now limits residents of the neighboring city of Shenzhen, the hub of the resale market, to one visit per week and a 7-day visa.

Located 90 minutes from the former British protectorate, the people of Shenzhen have long been accustomed to visiting Hong Kong in order to buy clothing, electronic equipment and other products. But Beijing is now pointing to a growing number of buyers who are buying in large quantities, with products sold directly to Shenzhen or shipped to other Chinese cities. 

The Chinese government is expanding new restrictions in order to reduce the number of visitors by 10%. In 2014, 47 million Mainland Chinese residents visited Hong Kong. The city, meanwhile, only has seven million inhabitants and a transport system that has become clogged by the flow of grey market trade.