Hong Kong retailers that do business out of industrial buildings are being targeted by the government for breach of tenancy regulations.
The crackdown is part of efforts to curb parallel trading, Apple Daily reported Wednesday.
The Lands Department has inspected more than 2,000 industrial building units in Tuen Mun, Yuen Long and North District where parallel trading with cross-border merchants is rampant.
It issued warnings to 37 retailers suspected of lease violations, the report said.
On Tuesday, the government charged tenants of two industrial units in Tuen Mun with illegal retail activity.
One sold household items and the other baby products, two of the most sought-after commodities by mainlanders. Both businesses have been shut.
The campaign was generally welcomed by the retail sector but a citizens group said the government needs to do more than ease anger among Hong Kong residents over shortages and rising prices caused by parallel trading.
The North District Parallel Imports Concern Group urged the government to extend the campaign to warehouses leased by parallel traders.
Tuen Mun district councilor Chan Wan-Sang warned that the crackdown might fail to completely stop parallel trading and instead hurt small legitimate businesses.
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