Plan to limit Shenzhen-Hong Kong border crossings

Mainland authorities may limit the number of times Shenzhen residents can cross the Hong Kong border in a day as part of efforts to clamp down on parallel trading.

An anti-smuggling office of the Guangdong government has announced that several agencies are looking into the possibility of imposing restrictions on the multiple-trip permits given to Shenzhen permanent residents, which are now unlimited.

This comes after official statistics showed traders buying goods in Hong Kong for resale in Shenzhen without paying import tax make up 95 per cent of those who cross the border with the permits, with just 5 per cent being genuine tourists.

It also follows protests by residents of New Territories border towns about disruption and price increases caused by the traders that led to crackdowns by Hong Kong enforcers.

North District Council chairman So Sai-chi said restrictions on trips would cut the number of traders in Sheung Shui.

"There are no laws to ban parallel trading, so more and more people join the fray … their numbers grow bigger before festivals such as Christmas and Lunar New Year when demand for consumer products is keen on the mainland," he said.