CRI听力:Cheaper RMB Has Little Impact on HK Prices

HK dollar remains relatively strong against RMB as the banknote in Hong Kong is pegged to the US dollar.

After the RMB hit its highest point against HK dollar in early 2014, it has depreciated by some 10 percent as of now, which means it is cheaper to purchase vegetables, meat and other products from the mainland.

But according to a food mart owner Li Fung Nin, the purchase prices of canned food and cookies are 3 to 4 percent lower, but only a few stores will offer cheaper retail prices.

"There is a trend of rising cost in labor, logistics, rents, water and electricity. And as the Lunar New Year is approaching, we will have to spend more on transportation and labor, so they have counter effect to the devaluation of RMB. "

At the same time, Deputy Director of Fresh Meat Coalition Kwan Kwok Wah says the price of meat is more dependent on supply rather than the exchange rate.

"We will keep a close watch on the price. If they have sufficient supply on the mainland, they will export to Hong Kong regardless of the performance of RMB, because the price sold to Hong Kong must be higher than that to the mainland."

But a weaker RMB does have an impact on Hong Kong, as tourists find the price rather expensive in the famously duty-free city.

"It is more expensive here. I saw a pair of shoes just now, which is about 6000 RMB in the mainland, and it is 8600 HK dollars here. That's about 7300 RMB!"

Hong Kong's tourism and retail sectors are expected to undergo transformation which has already been feeling the chills for the past year, after years of a booming scene.

But for Hong Kong outbound tourists, it is a good deal to travel to the mainland now. Ng Hi On is the Deputy Director of China Travel Service in Hong Kong.

"The price could be lower in hotel expenses, food, coaches, air tickets and high-speed railway tickets."

He also says a 10 percent year-on-year growth is expected in the number of tourists who are willing to travel to the mainland during the Lunar New Year.