A mall offering Hong Kong goods has opened at the Qianhai free-trade zone in Shenzhen, targeting mainland tourists who used to cross the border for shopping.
Prices of goods at the CTF HOKO mall, run by Chow Tai Fook Enterprises Ltd., will be as low as those sold in Hong Kong, the Hong Kong Economic Journal reported on Tuesday.
Chow Tai Fook chief executive Adrian Cheng said the group has set up a team to monitor price levels at the mall on a daily basis.
About 70 to 80 percent of shops in the mall will sell Hong Kong goods at prices as competitive as those in Hong Kong or even lower, Cheng said.
Chow Tai Fook Enterprises holds a 50 percent stake in the mall, while Chow Tai Fook Jewellery Group Ltd. (01929.HK) and New World Development Co. Ltd. (00017.HK) own 30 and 20 percent respectively.
The parties have invested 350 million yuan (US$54.5 million) in the mall, which covers 19,000 square meters of space.
The group is offering concessions to enhance the competitiveness of the 21 tenants that have opened in the first phase of the mall.
The tenants include Chow Tai Fook Jewellery, Sa Sa International Holdings Ltd. (00178.HK), Giordano International Ltd. (00709.HK), Wai Yuen Tong Medicine Holdings Ltd. (00897.HK) and Maxim’s Caterers Ltd.
Construction of the second phase of the mall is expected to be completed next summer.
About a hundred vendors have indicated interest in moving in, Cheng said.
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