Behind the Craze of Hong Kong People Going North
In 2024, Hong Kong people’s enthusiasm for going north is on the rise. According to Hong Kong media, during the three-day Dragon Boat Festival in Hong Kong, more than 520,000 people left Hong Kong on the first day of their holiday, of which nearly 80%, about 400,000, went north, a new record high after this year’s Easter peak of 529,000 people. According to the data from the Immigration Department, the Government of the Hong Kong Special Administrative Region of the People’s Republic of China, approximately 53 million Hong Kong residents went north throughout 2023, equivalent to 7.2 “trips north” on the average for each Hong Kong resident.
Why are more and more Hong Kong people going north for cross-border consumption? Research Assistant Zhang Na and Executive Assistant Yang Yaran of the Institute of Policy and Practice, Shenzhen Finance Institute (SFI), The Chinese University of Hong Kong, Shenzhen (CUHK-Shenzhen), made an observation and believed that it is the exchange rate, consumption, and the improved infrastructure in Chinese Mainland that drive Hong Kong people to go north by the large. The rapid development of the consumer market in the Chinese Mainland has drawn the attention of Hong Kong people, who have seen a richer variety of shopping options and more luring prices there. Secondly, as Hong Kong and the Chinese Mainland are getting increasingly closer, improved transportation facilities have also provided convenience for consumption in the north. This paper believes that despite the obvious trend for Hong Kong people to go north for consumption, there are still challenges in mobile payment, policy differences, and other aspects. It is still necessary to further promote the interconnection between the Chinese Mainland and Hong Kong and usher in a new chapter of “reaching out to each other.”
Motivation and Trends
First, cost-effective consumption driven by exchange rates.
Second, the upgraded consumption environment in the Chinese Mainland and the changing mentality.
Third, the rapid advancement of interconnection in the Greater Bay Area.
Fourth, challenges in local consumption scenarios in Hong Kong.
Fifth, the trend of Hong Kong residents purchasing a house in the Chinese Mainland to enjoy their old age.
Current Barriers
First, mobile payment.
Second, fund transfer from Hong Kong accounts for investment in the Chinese Mainland real estate.
Third, challenges such as system differences in medical and elderly care and cultural adaptations for Hong Kong people going north.
Policy Recommendations
First, optimize payment convenience and security for Hong Kong people.
Second, improve policies for Hong Kong people to invest in the Chinese Mainland real estate and transfer funds.
Third, promote the sharing of medical resources within the Guangdong-Hong Kong-Macao Greater Bay Area.
Fourth, strengthen the protection of the rights and interests of consumption in the Chinese Mainland for Hong Kong residents.
