Editor’s Note
This article highlights a notable trend of mainland consumers traveling to Hong Kong to purchase gold, driven by price differentials and lower labor costs. It reflects broader economic dynamics and consumer behavior in the region.
Mainland customers are flocking to Hong Kong to buy gold, taking advantage of price differences. The photo shows a gold shop in Hong Kong.
Gold prices on the mainland have remained high since last year. As seen from social media posts, many mainland consumers are heading to Hong Kong to buy gold due to price differences and lower labor costs. Chang Xuli, Vice President of the China Information Association and Founding Dean of the National Academy of New Economic Research, stated that Hong Kong enjoys a lower tax rate, lower commodity costs, and gold prices are no exception. Hong Kong has numerous jewelry shops, and fierce market competition often makes prices more attractive.
Ms. He from Guangxi went to Hong Kong to purchase gold jewelry last month. On that day, the gold price at a Hong Kong gold shop was HK$592 per tael, equivalent to about RMB 540, compared to the mainland gold price of about RMB 610 (approximately HK$669), saving about RMB 70 (HK$77) per tael. Some mainland interviewees mentioned that labor costs at Hong Kong gold shops are significantly lower than on the mainland, with some shops even offering zero labor fees for designated gold products. Furthermore, mainland customers using electronic payments for a certain amount can enjoy preferential exchange rates, and some merchants also offer different discounts on designated gold products upon reaching spending thresholds.
Shenzhen customs indicated that if the value of gold jewelry carried exceeds RMB 5,000 (approximately HK$5,500), a declaration is required to determine if duty is payable; the weight of carried gold cannot exceed 50 grams, otherwise it may also be subject to duty.
The Shuiwei Jewelry Trading Center in Luohu District, Shenzhen, Guangdong Province, is not only the largest jewelry trading market domestically but has also become a popular “gold panning” destination in recent years. Media reported last Friday (March 8) that the gold price in Shuiwei has approached RMB 500 per gram (approximately HK$550). Some local gold shops indicated that the recent surge in gold prices has also driven up the price of recycled gold, leading to a significant increase in the number of people buying and selling gold recently.