Group 1 - The housing situation in Hong Kong is dire, with 220,000 people living in less than 10 square meters, and it takes an average of 14.4 years of income for a typical family to buy a home [1][8][10] - In contrast, purchasing a property in Guangdong is significantly more affordable, with a 51 square meter unit in Huizhou priced at approximately 400,000 yuan, which is half the price compared to 2020 [1][3][7] - A recent survey by Bank of China Hong Kong indicates that Hong Kong residents prefer to buy properties in Shenzhen, followed by Guangzhou, Zhongshan, Zhuhai, and Macau [1][13] Group 2 - The trend of Hong Kong residents moving north for consumption has expanded beyond real estate, with significant spending in supermarkets and popular dining spots across the Greater Bay Area and even inland cities like Chongqing and Changsha [2][16][21] - Longfor Group has recently sold 400 units targeting Hong Kong buyers in various locations including Huizhou, Zhongshan, Guangzhou, and Dongguan [2][4] - The average price for properties in Huizhou is now between 8,000 to 8,600 yuan per square meter, a significant drop from the previous range of 10,400 to 14,000 yuan per square meter [5][6] Group 3 - The housing crisis in Hong Kong has led to a long waiting time for public housing, averaging 5.3 years, which exacerbates the living conditions for many families [11] - The Guangdong province has implemented policies to ease property purchase restrictions for Hong Kong residents, facilitating cross-border transactions [12][15] - As of June 2025, there have been 3,341 property transactions involving Hong Kong residents in Guangdong, generating approximately 3.08 billion yuan in cross-border income [15]

Core Viewpoint - The trend of Hong Kong residents consuming in mainland China does not negatively impact their local consumption, as evidenced by a systematic study conducted by Hong Kong Chinese University [3][6]. Group 1: Consumption Trends - Hong Kong residents' travel to mainland China has returned to pre-pandemic levels, with approximately 9% of total consumption being spent abroad, amounting to about 50 billion HKD per quarter [4]. - The average spending of Hong Kong residents in mainland China ranges from 300 to 500 HKD per person, with over 450 million active users on the AlipayHK platform reflecting the consumption habits of more than two-thirds of Hong Kong residents [5]. - The consumption patterns differ significantly between Hong Kong and mainland China, with over 80% of spending in mainland China on lifestyle services, while local consumption in Hong Kong is primarily focused on retail and dining [5][6]. Group 2: Service Industry Dynamics - The upgrading of the service industry in mainland China has created new consumption forms that are difficult for Hong Kong to replicate, contributing to the sustained trend of residents consuming in mainland China [6]. - Digital services are becoming a key driver for integration in the Greater Bay Area, with over 200,000 Hong Kong residents using cross-border services in the past year, shifting from spontaneous to essential consumption [6][7]. Group 3: Economic Implications - The increase in Hong Kong residents' consumption in mainland China has led to a spillover effect, expanding beyond major cities to lower-tier cities and other regions [7]. - The consumption patterns indicate a potential outflow of spending from Hong Kong, which could lead to structural changes in the local economy if the trend continues [9]. - Historical data shows that foreign tourists' spending in Hong Kong has consistently exceeded local residents' spending abroad, indicating a net inflow of consumption that supports local businesses [8].

Core Viewpoint - The research conducted by Professor Song Zheng and his team at the Chinese University of Hong Kong indicates that Hong Kong residents' consumption in mainland China does not negatively impact their spending in Hong Kong [1] Group 1: Consumption Patterns - Hong Kong residents primarily spend on life services in mainland China, while their consumption in Hong Kong is focused on retail and dining sectors [1] - The consumption of Hong Kong residents in mainland China has expanded from major cities like Shenzhen and Guangzhou to second-tier cities in the Greater Bay Area, such as Zhongshan and Jiangmen, as well as to cities like Chongqing and Changsha [1] Group 2: Cross-Border Consumption Trends - The trend of Hong Kong residents traveling to mainland China has been facilitated by the convenience and widespread adoption of payment methods, leading to significant consumption spillover [1] - The number of trips made by Hong Kong residents to mainland China has returned to pre-pandemic levels, indicating a recovery in cross-border travel [1] Group 3: Overall Consumption Impact - The proportion of Hong Kong residents' overseas consumption relative to total consumption has remained relatively stable before and after the pandemic, suggesting that spending in mainland China has not displaced consumption in Hong Kong [1]

Core Insights - The report by Professor Song Zheng from the Chinese University of Hong Kong indicates that Hong Kong residents' consumption in mainland China does not negatively impact their local spending, contrary to popular belief [1][2] Group 1: Consumption Patterns - Hong Kong residents' outbound consumption accounts for approximately 9% of total consumption, with quarterly spending around 500 billion HKD, remaining stable pre- and post-pandemic [1] - The average spending per Hong Kong resident in mainland China is estimated to be between 300 and 500 HKD [1] - In mainland China, service sector spending constitutes about 50% of total expenditures for experienced AlipayHK users, while retail spending is only 28% [2] Group 2: Service Sector Insights - Over 80% of service sector spending by Hong Kong residents in mainland China is attributed to lifestyle services, contrasting with the focus on retail and dining in Hong Kong, which account for 58% and 29% respectively [2] - The report suggests that the services available in mainland China do not directly compete with those in Hong Kong, as they offer products that are unavailable locally [2] Group 3: Market Trends - The consumption trend of Hong Kong residents is expanding beyond major cities like Shenzhen and Guangzhou to other regions in mainland China, indicating a gradual integration of the cross-border consumption market [2] - The convenience and popularity of payment methods have contributed to a noticeable spillover effect in the mainland consumption market [2]