Han Ximin

    MANY Shenzhen housewives are joining an emerging group who regularly cross the border to buy daily necessities and groceries which are cheaper than on the mainland.

    Shopping for daily necessities in Hong Kong has become routine for Han Xiaowen, an employee of a design company in Luohu.

    “I was surprised when I was told that food and other basic items on the other side of the border were cheaper. Grocery prices in Shenzhen are high this year,” Han said.

    She goes to Sheung Shui every two weeks, in the north of Hong Kong’s New Territories.

    “We have no choice. Prices in Shenzhen are increasing very fast,” said Han.

    In Shenzhen, a packet of salt could sell for 2 yuan (US$0.30), while in Hong Kong, it was HK$1.1 (US$0.14). Fuji apples cost about HK$10 for four in supermarkets in Hong Kong, or 2.15 yuan each, half the price at wholesale markets in Shenzhen. You can buy 30 eggs for HK$23 at Hong Kong supermarkets.

    “Shampoo, toilet paper and dog food are more expensive in Shenzhen,” Han said.

    “If you buy more each time, the savings can cover the cost of your trip and the quality is more reliable,” Han said.

    Shopping in Hong Kong seems to have become a trend due to inflation and the appreciation of the yuan against the Hong Kong dollar over the past few years.

    There was a 4.8-percent year-on-year rise in the consumer price index (CPI) in Shenzhen in October 0.4 percent higher than the national average and the result of food price increases.

    Food prices rose by 11.7 percent last month over the same period last year. There were also price rises for cigarettes, clothing, home medical apparatus and entertainment last month, according to the statistics. The mainland’s overall CPI rose 3.8 percent while Hong Kong was 2.6 percent. Rising food prices account for three-quarters of national inflation and water, power and gas prices contribute another 15 percent.

    “I don’t think the government has done a very good job in controlling prices because Hong Kong has a much higher living standard, salaries and housing prices. Hong Kong’s prices should be higher than Shenzhen,” a Nanshan District resident surnamed Zhu said.

    Some Hong Kong people living in Shenzhen also feel the chill of inflation. Huang, who lives at a Huangyuyuan housing estate in Futian, is considering selling his apartment and moving back to Hong Kong.

    Huang works at a garment factory in Sheung Shui earning around HK$14,000 a month. He bought an apartment six years ago but recently felt he couldn’t afford the increasing living costs for his family.

    “Several years ago, 100 Hong Kong dollars could be exchanged for 110 yuan and living costs were around 3,000 yuan a month for the family. But now it had changed to 85 yuan for every HK$100, while living costs had almost doubled,” said Huang.

    Mainland shoppers have also revitalized Zhongying Street in Yantian,which had been quiet for years.

    More than 2,000 people shop in the street each day, according to a Shenzhen Economic Daily report last week. The increase in the number of shoppers was partly because of the appreciation of the yuan, cheap and reliable products in Hong Kong as well as the improved management of shoddy products, which had marred the reputation of the street. Some daily necessities sold on the Hong Kong side are around 40 percent cheaper than in Shenzhen.

    “The transport cost to Zhongying Street is much cheaper than going to the other parts of Hong Kong,” a resident was quoted by the newspaper as saying. 

    Editor’s Note

    China’s State Council last week announced price control guidelines to curb price rises of daily necessities and raw materials to counter the fastest rise in inflation in two years. The State Council pledged to stabilize natural gas prices, crack down on speculation in agricultural produce and ensure the supply of vegetables, grain, cooking oil and sugar. Price caps would be introduced if necessary, the council said in a statement on its Web site.