Beijing and Shanghai both leaped more than 20 places to overtake Hong Kong as the most expensive place in China, a human resources agency's global survey of 400 cities found.
Researchers at ECA said it was the first time both Beijing and Shanghai had been significantly more expensive than Hong Kong in the cost of living survey for expatriates. They said the weak US dollar and inflation on the mainland were the reasons.
'The cost of living differential between [mainland cities and Hong Kong] has consistently narrowed since 2007,' Lee Quane, Asia regional director of ECA International, said.
However, all three cities had seen steep climbs in the global ranking, they said, which could mean it was increasingly costly for overseas talent to be relocated to the region.
ECA carries out its survey twice a year, in March and September, comparing a basket of commonly purchased consumer goods and services in about 400 cities worldwide.
In this year's March study, Beijing jumped 28 places to be ranked 20th globally, while Shanghai, previously 49th in March last year, is now 26th. Hong Kong, now 36th, climbing 11 places from 47th, is still more expensive than Manhattan at 40th but cheaper than Paris (34th).
In the top 50 most expensive locations in Asia, the two mainland cities were fifth and sixth, respectively, behind the top four Japanese cities - Tokyo, Nagoya, Yokohama and Kobe. Hong Kong was ninth behind Seoul (7th) and Singapore. Shenzhen and Guangzhou were 10th and 11th.