Open Door

"Hong Kong will now enjoy another competitive advantage over other Asian cities"

Great news for us, Hong Kong's permanent residents! We now have the privilege of a five-year China travel permit, allowing us to cross the boundary electronically. This multiple-entry permit offers 90 days of visa-free access to the Mainland, with the only condition being no engagement in work. It's a fair deal.

So, I can now zoom through with my wife without submitting lengthy visa applications or waiting in line to clear immigration manually. 

The foreign chambers of commerce are not just thrilled, they're ecstatic about this policy change. They see a bright future with a boost in business exchanges and predict that more companies might choose to establish their regional offices here, all thanks to the convenience of the new travel permit.  

Hong Kong will now enjoy another competitive advantage over other Asian cities as its role as a super-connector for the massive Greater Bay conurbation grows.

However, the local retailers might not be as enthusiastic about this policy change. The relaxed boundary-crossing arrangements could lead to more expatriates joining the exodus that's become a norm during long holiday weekends. Recent sales data confirms that retailers are indeed feeling the pinch. 

In May, Hong Kong's retail sales fell by 11.5 percent. And more bad news is coming. A strong Hong Kong dollar and citizens opting to wine and dine in Shenzhen and even do their domestic shopping there are having an impact. 

Locals are opting for the cheaper Shenzhen, while the profile of Mainland tourists is changing. Hong Kong shops selling bling are no longer attractive to mainland visitors, especially the young, who appear more interested in creating TikTok moments than splashing the cash on fancy jewellery and watches. Market forces will push the retail sector to adjust along with the landlords who push up prices through extortionate rents. 

Looking ahead, it's clear that integration with the Mainland will continue to shape Hong Kong's future. However, we must also be aware that full and unrestricted movement across the boundary is still unlikely. After all, Hong Kong's infrastructure couldn't cope with a massive influx. It's a challenge we need to be prepared for.

Meanwhile, while everyone is heading north, two pandas are coming south.