Parallel trading in Hong Kong

Parallel trading in Hong Kong is the phenomenon of Chinese parallel traders taking advantage of multiple entry visa policy to import goods from Hong Kong to mainland China, causing shortages of household goods in various locations starting in the North District and expanding to Tuen Mun, Yuen Long, Tai Po and Shatin.

Problems related to this include increasing congestion from day traders, overloading of infrastructure and disruption of the everyday lives of residents in the northern districts of Hong Kong.

Demand for significant volumes of daily necessities favoured by Shenzhen residents has progressively decreased the numbers of stores catering to local needs, and caused rent inflation and shortage of certain goods such as infant formula.

[2] The Shenzhen customs department reported in 2015 that of 33,000 arrests made for trafficking parallel goods across the border since 2010, 80 percent were Hong Kong residents.

[3] Zhang Xiaoming, Director of the CGLO in Hong Kong, was satisfied overall with the implementation of the Individual Visit Scheme, and said the problem of parallel trading should not be exaggerated for political reasons.

[5] Traders mainly gather in Sheung Shui station Exit C and the platform as trading centres to pass on goods to buyers in China.

Some of the traders break down large appliances such as washing machines into pieces in an attempt to avoid the inspection of the staff and policemen.

[8] Furthermore, ringleader traders hired women with children and the elderly to help them to transport the milk powder across the border to avoid inspections.

Crowding of smugglers together with the large amount of commodities and garbage blocked pedestrians, causing environmental problems and endangering the safety of children and the elderly, negatively affecting daily life of citizens in the community.

According to a survey done by New Start (新起點) on 27 January 2013, among the 500 Northern District citizens interviewed, 100% of them were discontented with the Government on the issuance of multiple-entry permit.

Furthermore, since parallel trading worsened inflation and caused serious milk powder shortage problems, some Hong Kong citizens regarded mainlanders as resource marauders.

[19] Some even rioted outside chained pharmacies to express their discontent as these shops stock up milk powder for sale to mainlanders at higher prices.

[22][23] A small protest march on 22 February organised by Population Policy Concern Group and North District Parallel Imports Concern Group and attended by a dozen people headed for the office of New Territories legislator Michael Tien that was inside the Discovery Park shopping mall in Tsuen Wan.

[27] Approximately 20 people met up in Sheung Shui at 2 pm; the numbers of protesters increased to 100 when rallied moved on to Tuen Mun in the late afternoon.