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]