China has relaxed visa restrictions for residents of Shenzhen, the southern tech hub, allowing them unlimited visits to Hong Kong within a year, Bloomberg reports.
This marks a reversal of the one-trip-per-week policy implemented in 2015, restoring a system last seen in 2009. The change, announced by state broadcaster China Central Television (CCTV), is effective December 1.
The previous restrictions were introduced following complaints from Hong Kong residents about “parallel trading,” where large numbers of mainland Chinese shoppers purchased goods in Hong Kong for resale on the mainland, leading to weeks of protests.
The Hong Kong government recently requested Beijing to reinstate the multiple-entry visa system as part of broader efforts to revitalize its struggling tourism sector. However, the long-term impact of this change remains uncertain, given the ongoing economic slowdown in mainland China and Hong Kong’s diminished appeal to Chinese tourists in recent years.
The move also includes a relaxation of visa rules for residents of Zhuhai, allowing them weekly visits to Macau.
The announcement triggered a positive response in the Hong Kong stock market, with shares of consumer-related companies experiencing significant gains. Sa Sa International Holdings Ltd. saw a 9% jump, while Samsonite International SA rose approximately 5%. A Bloomberg Intelligence index tracking Macau casino operators also increased by 3%.
The Hong Kong government estimates that over 10 million Shenzhen residents are eligible for the new visa policy, anticipating a boost to the tourism, catering, and retail sectors. However, visitor numbers remain significantly below pre-2018 levels. Hong Kong reported 3.1 million visitor arrivals in September, a 30% decrease compared to September 2018, before the city faced social unrest and three years of COVID-related restrictions. Mainland China accounts for roughly 75% of Hong Kong’s visitor arrivals.
