How will new permit rules involving Mainland visitors affect HK?

Curbs are seen to avoid trade abuse.

It has been noted that the Shenzhen municipal government will likely limit Mainland Chinese visitors who travel to HK via multiple-entry permits to only once a week, starting mid-April.

According to a research note from Bank of America Merrill Lynch, only Shenzhen permanent residents are allowed to hold multiple-entry permits, which used to enable them to make as many trips as they want to HK.

This restriction could effectively cut the number of multiple-entry permit holders visiting HK by around 30%, thereby helping to avoid abuse by parallel-goods traders.

Bank of America Merrill Lynch has also noted that the new policy should help ease social tensions.

It said this measure should also help to ease social tensions as rampant cross-border trading activities and the large number of Mainland tourists have generated adverse public comments in HK, with some organizing strings of protests and riots against parallel traders and Mainland tourists over the past few months.