Saturday, November 30, 2024 China has announced a significant relaxation of visa policies for Shenzhen residents, allowing them to make unlimited trips to Hong Kong within a year, starting December 1. This marks a departure from the previous policy, which limited travelers to one trip per week. The change reinstates a multi-entry visa system that was first introduced in 2009 but replaced in 2015 due to concerns over parallel trading.
The earlier restrictions had sparked protests in Hong Kong, as mainland visitors bought goods in bulk to resell on the mainland, creating disruptions in the city. With the new visa policy, Shenzhen residents will now be able to apply for multiple-entry visas, significantly increasing travel flexibility. This decision is seen as a response to Hong Kong’s struggling tourism sector, which has been slow to recover from years of political unrest and the COVID-19 pandemic.
The relaxation of the visa rules has already had a positive impact on Hong Kong’s stock market, with shares in retail and consumer-focused companies seeing notable gains. Additionally, Macau’s casino operators also saw a rise in stock prices, reflecting investor optimism about increased consumer spending in the region. The Hong Kong government had pressed for the return of the multiple-entry visa, hoping to revive its tourism industry and attract visitors from mainland China.
However, the effectiveness of this policy shift remains uncertain, as mainland China’s economy contin.
