HK economy reviving because of influx of RMB

[skylee]

People would expect a withered economy in HK after SARS. But strange enough it is showing strong signs of recovery, mainly because of the influx of Mainland tourists. Shopping malls are swamped with them, spending, spending, spending. And now that they are able to use their RMB credit cards in HK, there is no limit to their purchasing power here. Restaurants/shops have started to hire people to serve them, so the unemployment rate has dropped, people are earning money, and are able to spend again.

HK people are considering buying properties again, and so the prices have started to rise (bubbling, bubbling). This year, most people have got year-end double-pay (first time in years) AND bonus (very strange indeed).

Looks like we are going to have a prosperous year of monkey.

PS - the revival is also due to the CEPA (Closer Economic Partnership Arrangement).

[cuthbert]

The number of people in mainland who become richer and richer is more and more.

[blob]

But do you think the number of people getting poorer in china is even greater?

I wonder if the rich-poor gap in china is getting increasingly bigger.

[pazu]

Oh yes, I've read from news that a lady wanted a watch which costed HK$390000 **ONLY**!

[Ian_Lee]

Skylee:

I saw the influx of Mainland tourists as a long overdue measure to correct balance of payment in tourism in HK.

During the past 20+ years, tourism between Mainland and HK has always been just a one-way street with HK suffering a huge account deficit. HK government statistics showed that even in last year when the Mainland tourists started to flood in from July, HK still recorded a minor account deficit.

It is natural that tourist flow should be both way.