The Shenzhen Qianhai Management Authority plans to build a shopping complex for Hong Kong goods in a bid to discourage parallel trading across the border, the Hong Kong Economic Journal reported Wednesday.
The complex, whose construction is expected to be completed by the end of the year, will enable mainland consumers to buy Hong Kong goods without having to travel to the territory and thus help reduce demand for goods from parallel traders, Witman Hung Wai-man, managing director of Qianhai International Liaison Services Ltd. and chief coordinator for Hong Kong affairs, said.
Five Hong Kong-based enterprises have already expressed their interest in setting up shops at the facility, which will occupy a 100,000 square foot site with 200,000 square feet of floor space.
The authority will invest in the complex but is not expected to be involved in its operation. The facility is geared towards mainland tourists who visit Hong Kong under the solo visit scheme to buy daily necessities such as baby formula and napkins, Hung said.
As such, it is expected to discourage parallel trading, which is blamed for worsening relations between mainland visitors and Hong Kong residents.
Tax concessions for firms operating in the complex will be discussed with the State Administration of Tax, while transport support is also being arranged, he added.
Some 23,000 enterprises are registered in the Qianhai economic zone with a combined capital of 1.4 trillion yuan (US$223.6 billion). They include 1,171 firms from Hong Kong, which are financial services companies or technology startups.
Translation by Vey Wong[Chinese version]
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