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 Insights - The integration of the Greater Bay Area (GBA) is enhancing the potential of a "Digital Bay Area" as evidenced by a recent study from The Chinese University of Hong Kong, which indicates that Hong Kong residents' consumption in mainland China does not detract from their spending in Hong Kong [1][5] - The study, supported by AlipayHK and Ant Group, reveals that Hong Kong residents are increasingly traveling further into mainland China for consumption, extending beyond major cities to lower-tier cities and popular tourist destinations [3][5] Group 1: Consumption Trends - Hong Kong residents' spending in mainland China is primarily focused on lifestyle services, while their spending in Hong Kong is concentrated in retail and dining sectors [1][5] - The number of trips made by Hong Kong residents to mainland China has returned to pre-pandemic levels in 2024, with cross-border consumption not negatively impacting local spending [5][6] - AlipayHK data shows that nearly half of the spending by frequent travelers to mainland China is on experiential services, such as health and beauty, contrasting with their local spending habits [5][6] Group 2: Digital Payment and Integration - The digital service experience is becoming a catalyst for the integration of the GBA, with AlipayHK expanding its services beyond payments to include transportation and appointment services [5][6] - Over 2 million Hong Kong residents have used AlipayHK for cross-border consumption in the past year, with 20% developing a habit of using a single app for various services, enhancing the convenience of cross-border transactions [6] - The growth of digital technology in mainland China has significantly boosted service consumption, with small and micro businesses seeing annual sales and transaction growth of 15.5% and 11.9%, respectively [6]

Core Insights - The trend of Hong Kong residents traveling to mainland China for consumption has become a norm, with no significant negative impact on local spending in Hong Kong [1][2] - The research indicates that the consumption patterns of Hong Kong residents differ significantly between mainland China and Hong Kong, with a focus on service consumption in the mainland [2][3] Group 1: Consumption Patterns - Hong Kong residents' spending in mainland China is primarily on life services, while local spending is concentrated in retail and dining sectors [1][2] - The study shows that the number of trips made by Hong Kong residents to mainland China has returned to pre-pandemic levels, indicating a stable consumption pattern [1][2] Group 2: Digitalization Impact - The digitalization of services has facilitated over 2 million Hong Kong residents to engage in consumption in mainland China, enhancing the integration of the Greater Bay Area [3] - AlipayHK's cross-border services have evolved beyond simple payments to include various scenarios such as transportation and appointment services, promoting a seamless consumer experience [3] Group 3: Future Outlook - The ongoing trend of consumption in mainland China is expected to persist, with spending levels returning to normal without drastic changes in the short term [2] - The rapid development of digital technology in mainland China has significantly boosted service consumption growth, with small businesses experiencing notable increases in sales and transaction volumes [3]

Core Insights - The integration of digital services in the Guangdong-Hong Kong-Macao Greater Bay Area is enhancing the potential of the "Digital Bay Area" [1][6] - The study conducted by The Chinese University of Hong Kong reveals that Hong Kong residents' consumption in mainland China does not detract from their local spending [1][6] Group 1: Consumption Trends - Hong Kong residents are increasingly traveling beyond traditional destinations like Guangzhou and Shenzhen for consumption, now including cities like Zhongshan and Jiangmen, as well as popular tourist spots in other provinces such as Chongqing and Changsha [3][6] - The study indicates that nearly half of the spending by Hong Kong residents in mainland China is on service experiences, while their local consumption is primarily focused on retail and dining [6][8] Group 2: Digital Payment and Service Integration - AlipayHK, with over 4.5 million active users, has facilitated a seamless cross-border payment experience, allowing users to engage in various services such as ride-hailing and restaurant reservations through a single app [3][8] - The convenience of digital payment has transformed cross-border spending from spontaneous to habitual, enhancing consumer satisfaction and promoting the integration of people and capital flows within the Greater Bay Area [8] Group 3: Economic Impact - The use of digital platforms for online sales has led to a 15.5% increase in annual sales and an 11.9% rise in transaction volume for small and micro service businesses in mainland China [8] - Mobile payment is projected to boost household consumption in mainland China by 16%, contributing to a decrease in the Engel coefficient by 1.7 percentage points [8]

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]