FEWER Hong Kong residents had been coming to Shenzhen for the weekend in recent months as a result of the appreciation of the yuan and high inflation on the mainland, the Hong Kong Ming Po said.
High consumer prices in Shenzhen were also forcing some Hong Kongers living in the city to move back to the SAR, the Hong Kong newspaper said.
The yuan had risen by 5 percent against the U.S. dollar this year, which meant that the yuan also rose against the Hong Kong dollar which is pegged to the U.S. dollar.
Each HK$100 can now be converted into only 85 yuan (US$13), far lower than the 116 yuan back in early 2007, said a Hong Kong resident who gave only his family name Wong. Wong used to come to Shenzhen for weekends for karaoke and meals with his family and friends. But he had now canceled trips to Shenzhen.
The costs in Shenzhen have almost doubled in two years. It is very expensive, he said.
The consumer price index (CPI) in Shenzhen rose for the ninth consecutive month in September, up 3.8 percent, according to figures released by the Shenzhen office of National Bureau of Statistics. It is also expected to rise by at least 3 percent this year.
The high prices are also driving away Hong Kong people who moved to Shenzhen because of lower living costs a few years ago. The newspaper said many of these had either moved or were considering moving back to the SAR.
A Hong Kong container truck driver identified as Yip was one. He and his family came to settle in Shenzhen in 2003 but recently returned to Hong Kong.
I earn about HK$13,000 a month, which is worth a little more than 11,000 yuan now. The living costs in Shenzhen have increased too fast, Yip said.
(SD News)
