Retail in Asia

In Markets

Hong Kong’s next hurdle: fewer mainland shoppers

Hong Kong has a dilemma: retailers depend on mainland Chinese shoppers for sales, but resentment among local residents has prompted Beijing to tighten the flow of visitors, which could hit the economy.

Mainlanders represent 84.2 percent of all visitors to Hong Kong, according to the latest Hong Kong Tourism Board (HKTB) data, and account for nearly a third of total retail sales.

But shortages caused by a steady stream of shoppers from Shenzhen, just across the border, to buy daily necessities in tax-free Hong Kong were the target of increasingly violent local protests over the past couple of months.

(Source: CNBC)