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Project Number : 項目編號： 2014.A7.007.14C

Project Title : Hong Kong Immigrants in Shenzhen: Facts and 項目名稱： Challenges 香港人在深圳 : 現狀與挑戰

Principal Investigator : Professor WU Xiaogang 首席研究員：吳曉剛教授

Institution/Think Tank : The Hong Kong University of Science and Technology 院校／智庫：香港科技大學

Project Duration (Month): 推行期 (月) ： 12

Funding (HK$) : 總金額 (HK$)： 229,452.60

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Hong Kong Immigrants in Shenzhen: Facts and Challenges

香港人在深圳：現狀與挑戰 (2014.A7.007.14C)

Final Report

The Hong Kong University of Science and Technology

March 2016

Acknowledgement

The research received support from the Public Policy Research Funding Scheme of the HKSAR Central Policy Unit (2014.A7.007.14C, HKUST ref: PPR14HS07). We thank the Shenzhen Municipal Bureau of Statistics and National Bureau of Statistics for assistance in data access and analysis, and Mr. JIANG Niantao (姜念濤), ZENG Donglin (曾東林), PhD student and Dr. LI Jun (李駿) for research assistance.

“Hong Kong Immigrants in Shenzhen: Facts and Challenges” Project Team

Principal WU Xiaogang (吳曉剛), Investigator Professor, Division of Social Science, Director, Center for Applied Social and Economic Research

For more information, please contact: (852) 23585875, or [email protected]

iii

Table of Contents (Abstract) ...... vii

摘要...... viii

I. Introduction ...... 1

II. Data Sources for Empirical Analyses ...... 5

III. Hong Kong Immigrants in Shenzhen: An Overview ...... 13

IV. Family Life and Living Conditions of Hong Kong Immigrants in Shenzhen ...... 18

V. The Twin-City Life of Hong Kong Immigrants in Shenzhen ...... 30

VI. Hong Kong Immigrants in the Labor Force ...... 35

VII. Summary, Conclusions, and Policy Implications for Hong Kong ...... 43

Appendix ...... 50

List of Tables

Table 1. Relevant Data Sets on Hong Kong Immigrants in Shenzhen ...... 12

Table 2. Demographic Profiles of Hong Kong Immigrants in Shenzhen (2010) ...... 15

Table 3. Relationship of Other Household Members with Household Head as the

Hong Kong Resident, 2008 ...... 21

Table 4. Duration of Staying in Shenzhen among Hong Kong Residents ...... 24

Table 5. Reason for Staying in Shenzhen ...... 24

Table 6. Tenure and Floor Area of Accommodation Per Capita of Hong Kong

Immigrant Household in Shenzhen (2008) ...... 26

Table 7. Housing Expense and Living Cost of Household of Hong Kong Residents in

Shenzhen (2008) ...... 27

Table 8. Frequency of Returning to Hong Kong in the Past Six Months (2008) ...... 31

Table 9. Main Reasons of Returning to Hong Kong (2008) ...... 32

Table 10. Location of Schooling for Hong Kong Children and Adolescents Living in

Shenzhen (2008) ...... 34

Table 11. Intention of Studying in Hong Kong in the Future for Hong Kong Children and Adolescents Living in Shenzhen (2008) ...... 34

Table 12. Industries of Working HK Immigrants and Shenzhen Residents (China

Population Census, 2010) ...... 43

List of Figures

Figure 1. Hong Kong Residents in Mainland China and Macao ...... 14 Figure 2. Age Distribution of Hong Kong Residents in Shenzhen, Shenzhen Population, Hong Kong Population, and Hong Kong Residents in China ...... 17 Figure 3. Age Distribution of Hong Kong Immigrants in Shenzhen, 2008 Survey and 2010 Census ...... 17 Figure 4. Population Pyramid of Hong Kong Immigrants in Shenzhen Based on2010 Census and 2008 Survey ...... 18 Figure 5. Household Size of Shenzhen Population, Hong Kong Immigrants in Shenzhen and Hong Kong Population ...... 20 Figure 6. Percentage of Spouse/Children Having Hong Kong ID (2008) ...... 22 Figure 7a. Spatial Distribution of Hong Kong Immigrants in Shenzhen, 2008 ...... 28 Figure 7b. Spatial Distribution of Hong Kong Immigrants in Shenzhen, 2010 ...... 28 Figure 8a. Spatial Distribution of Hong Kong Immigrants in Shenzhen (0-14 Years Old), 2010 ...... 29 Figure 8b. Spatial Distribution of Hong Kong Immigrants in Shenzhen (15-64 Years Old), 2010 ...... 29 Figure 9. Proportion of Hong Kong Residents in Shenzhen Who are Employed (Age 15-59), in Comparison to Two Other Reference Groups ...... 36 Figure 10. Educational Attainment of Hong Kong Immigrants in Shenzhen, Shenzhen Residents and Hong Kong Residents ...... 38 Figure 11. Trends of Hong Kong Residents Who Worked in Mainland China during the Past 12 Months Prior to the Survey Time………..…………………………………………………….38 Figure 12a. Occupations of Working-age HK Immigrants (2008) in Shenzhen and Residents in Hong Kong (2011) ...... 40 Figure 12b. Occupations of Working-age HK Immigrants (2010) in Shenzhen and Residents in Shenzhen (2010) ...... 40 Figure 13. Industries of Working-age HK Immigrants in Shenzhen (2008) and Residents in Hong Kong (2011) ...... 42

Hong Kong Immigrants in Shenzhen: Facts and Challenges

(Abstract)

This report analyzes the data from a household survey conducted in 2008 and the

2010 population census of Shenzhen, as well as the 2011 population census of Hong

Kong, to document the profiles of Hong Kong immigrants in Shenzhen at both the

household level and the individual level, and examine the problems they encountered

and the challenges they faced in their twin-city work and life. The data show that most

Hong Kong immigrants live in nuclear families in the areas bordering Hong Kong,

with the fathers/husbands as the main bread earners in Hong Kong. One-fifth of these immigrants are under age 15, and many of whom are cross-border children attending schools in Hong Kong. While Hong Kong immigrants generally enjoy higher socioeconomic status than Shenzhen residents, heterogeneity is also observed within the group, mainly due to differentials in educational and occupational attainment, leading to disparities in household income. While these immigrants have settled down with their families in Shenzhen as regular residents, they often travel back to Hong

Kong for different reasons, thus leading to a “twin-city” life. The findings of this report will aid the coordination of education, medical and other public services between the two cities and facilitate economic and social integration.

vii

香港人在深圳：現狀與挑戰

摘要

本報告結合 2008 年一項關於居深香港人的抽樣調查資料和 2010 年第六次人口

普查境外人口數據，結合深圳市 2010 年與香港特別行政區 2011 年的人口普查

資料，在住戶和個人兩個層次上綜合、系統分析了居深港人這個特殊社會群體

的基本情况及其 “雙城生活” 面臨的種種問題。我們的研究發現，居深港人基

本上是居住在深港邊境口岸附近的 2-3 人核心家庭的成員：家庭的經濟支柱是

主要在香港工作的丈夫／父親；妻子／母親大部分不工作、或者即使工作也多

在深圳本地工作；而 0-14 歲的未成年人佔這個群體的五分之一，不少還是在香

港上學的 “跨境學童”。他們的經濟社會地位體現出與深圳居民相比總體情况較

好、但內部也有較大差異的特點。就業人口的教育和職業分化直接導致了他們

的收入分化，進而導致家庭收入的分化。他們多屬深圳的常住人口，表現為在

深圳的居住時間已經較長、節假日大多會在深圳度過、未來 5 年不會更改常住

地等，但同時，也會頻繁地返回香港，約一半家庭在香港也擁有主要是用來自

住的居所，過著典型的 “雙城生活”。居住在深圳的香港人及其家庭成員已逐漸

發展成爲一個規模不容小覷的特殊社會群體。我們建議切實加強對這個群體的

調查，研究解决他們面臨的特殊問題，促進兩地教育、醫療等公共服務體系的

銜接。進一步推進深港兩地經濟社會的融合，建設深港優質生活圈。

viii

Hong Kong Immigrants in Shenzhen: Facts and Challenges

I. Introduction

Shenzhen, as an increasingly internationalized city, has been attracting many people

from abroad, especially from neighboring Hong Kong, to come to work and reside.

The demographic, economic and social ties of these two cities are becoming even

closer, playing out a new tale of “twin cities” with the rise of the Pearl River Delta in

China.

Hong Kong people living in Shenzhen have become an important social group that the government on either side cannot overlook. This group came about as a result

of the interplay between many economic and social factors. On the economic front,

the primary driving force behind Hong Kong residents’ “going north” is the relocation of Hong Kong enterprises and factories to mainland China, beginning in the late

1970s and early 1980s.1 While mainland China at that time could meet the demand of

Hong Kong enterprises and factories for inexpensive, low-skilled labor, for a long

period of time it could not provide the necessary professional and managerial

personnel. Therefore, high-level personnel from Hong Kong moved northward and

formed the initial group of Hong Kong immigrants in Shenzhen. Due to the difference

1 Chiu, Stephen W.K., and Tai-lok Lui. 2003. “Testing the Global City-Social Polarization Thesis: Hong Kong since the 1990s.” Urban Studies 41(10):1863-1888. 1

in living cost between these two cities, many Hong Kong residents also began to

emigrate to Shenzhen, with some residing in Shenzhen but still working in Hong

Kong. Some Hong Kong retirees living on pension or government subsidies also

opted to live in Shenzhen. The real estate companies in both cities have developed

residential housing projects near the border, aiming specifically at Hong Kong residents and other cross-border mobile populations. All these groups have contributed to the increasing population of Hong Kong immigrants in Shenzhen.

On the social front, an important factor is the cross-border marriages between

Hong Kong permanent residents and mainlanders.2 Such marriages have a long

history. There was essentially no border control between Hong Kong and Guangdong

prior to 1950. During the period between 1950 and 1980, under the condition of the

acquiescence of illegal immigrants, the spouses and children of Hong Kong

permanent residents could basically enter and live in Hong Kong with little

restriction. However, many also chose to remain in the mainland after getting married

with Hong Kong residents. Following the abolition of the “touch base” policy and the

start of legal immigration, to ensure the spouses and children of Hong Kong people

entered the territory in an orderly manner, the governments on both sides agreed to

2Ge Lin and Zhongdong Ma, 2008, “Examining Cross-border Marriages in Hong Kong since it Returned to PRC in 1997”, Population Space and Place, 14(5):407-418. Zhou, Muzhi, 2016. “Educational Assortative Mating in Hong Kong: 1981–2011” Chinese Sociological Review 48(1):33-63. 2

implement the one-way permit (OWP) scheme. This quota immigration system meant

that those mainlanders without an OWP could not enter Hong Kong for settlement purpose.3 They often chose to reside in neighboring Shenzhen so that they could visit

their families in Hong Kong more frequently. In recent years, influenced by the Hong

Kong court’s verdict on the Chong Fung Yuen case in 2001 and various other social

factors, the number of non-local pregnant women who gave birth in Hong Kong has

increased dramatically, creating a growing number of children with neither parents being Hong Kong residents with legal rights of abode. As those children reach school age, many of them become what are known as “cross-border students” who reside in

Shenzhen but attend school in Hong Kong, who travel back and forth between the two cities on a daily basis. While these children have the right of abode in Hong Kong, they must live with their parents in the mainland because their parents are not Hong

Kong residents. The number of this group has increased rapidly in in Shenzhen in

recent years.

In sum, the growing geo-economic and social interaction between Shenzhen and

Hong Kong has created a unique social group—Hong Kong people living in

Shenzhen. We call them Hong Kong immigrants in Shenzhen. Here “immigrants” are

3 Zhuoni Zhang and Xiaogang Wu 2011. “Social Change, Cohort Quality and Economic Adaption of Chinese Immigration in Hong Kong, 1991-2006.” Asia and Pacific Migration Journal 20(1):1-29. 3 those who hold Hong Kong identity cards but live in Shenzhen as their domicile. For a long period of time, this group has not been analyzed comprehensively because of the lack of high-quality representative survey data. Based on a sample survey conducted in 2008, “Survey of Hong Kong People Living in Shenzhen”, and the alien population data from the 6th Population Census in 2010 that included Hong Kong residents living in China, this report attempts to analyze in detail the size, composition, living conditions, cross-border activities, and employment of Hong

Kong immigrants in Shenzhen. Furthermore, using the population census data of

Shenzhen and Hong Kong in 2010 and 2011, respectively, we compare the Hong

Kong immigrants with the general population on both sides of the border, especially the socioeconomic profiles of those at working age. We attempt to identify the distinct features of this group to shed light on the forces driving their emigration and the policy implications for Hong Kong.

II. Data Sources for Empirical Analyses

We rely on two main sources of data to chart the profiles of Hong Kong immigrants in

Shenzhen, namely the Survey of Hong Kong People Living in Shenzhen 2008, and the Alien Population Census of China (Shenzhen) in 2010.

1. The Survey of Hong Kong People Living in Shenzhen 2008

The Survey of Hong Kong People Living in Shenzhen 2008 (hereafter the 2008 survey), conducted in 2008 jointly by the Planning Department of the Hong Kong

Special Administrative Region (HKSAR) Government and the Statistics Bureau of the

Shenzhen Municipal Government, aimed to better understand the social and economic

situation of Hong Kong immigrants in Shenzhen, as well as their ties with Hong

Kong. The survey covered all residential districts in Shenzhen and the intended

respondents were people who had the right of abode in Hong Kong but lived in

Shenzhen.

Implementation of the survey was divided into two phases. In the first phase, a

comprehensive survey was conducted to collect information on the total number of

Hong Kong residents living in Shenzhen and the particulars of individuals. The data

obtained was then used to establish a sampling frame for the second phase of the

survey. The second phase of the survey was conducted through face-to-face household 5

interviews with a group of Hong Kong residents living in Shenzhen selected by the

random sampling method. To be qualified for the household included the survey, at

least one household member must have the right of abode in Hong Kong as a

permanent resident. Their family members, however, were not necessarily Hong Kong

permanent residents. In the end, a total of 4,223 households with 11,576 household

members (among them 6,027 were Hong Kong permanent residents) were

successfully interviewed (see Appendix 1 for Questionnaires).4

The Planning Department of the Hong Kong SAR later published a study report to document the findings of the survey. However, most of the findings were for the entire population from an individual perspective even though the survey design was based on the household. An in-depth analysis of the household structure for Hong Kong immigrants in Shenzhen and major sub-groups is largely missing. In this report, we

first analyze the data collected at the household level, and then examine the social tie

of this group with Hong Kong, with an emphasis on the major sub-groups.

2. The 2010 Population Census of China (Alien Population)5

4 Shenzhen Municipal Bureau of Statistics and Shenzhen Association of Statistics 2008, Implementation of the Survey on Hong Kong Residents’ Living Conditions in Shenzhen (unpublished document obtained from Shenzhen Bureau of Statistics). 5 The census was conducted independently of China’s 2010 census of the general population, which will be introduced later, and the results were reported separately by the National 6

While the 2008 survey certainly provides a useful reference for understanding the characteristics of Hong Kong immigrants in Shenzhen, it is somewhat outdated and also has several limitations. First, the sampling frame for the survey was based mainly on official household registration. As a result, Hong Kong immigrants staying in hotels or a temporary residence may not have been covered in this survey. In addition,

as the 2008 survey report admits, those children who were born in Hong Kong to two

non-permanent resident parents, tended to be underreported. The size of this group

has presumably been increasing in recent years. Hence, it is necessary to draw on

other more updated sources. The most updated data available to us are from the 6th

Population Census of China in 2010.

Compared to the previous five rounds of population censuses, which only covered

those with a People’s Republic of China passport and who resided within the territory,

the 6th Population Census of China, for the first time, included alien populations who

were residing in China on November 1st, 2010.6 The contents of the questionnaire for

residents from Hong Kong, Macao, Taiwan and from foreign countries of the 6th

National Population Census included: name, relationship to the head of household,

gender, date of birth, purpose of staying in mainland China, duration of stay in

Bureau of Statistics. 6 Xiaogang Wu and Guangye He 2015. “The Evolution of Population Census Undertaking in China, 1953-2010” China Review 15(1): 171-206. 7

mainland China, educational attainment and citizenship. Besides these items, residents

from Hong Kong, Macao and Taiwan also needed to fill in their occupation, industry,

and duration of stay in Hong Kong, Macao and Taiwan over the past six months (see

Appendix 2 for the questionnaire).

Our analysis is based on both government aggregated statistical reports and

detailed tabulation data with assistance from the Shenzhen Municipal Bureau of

Statistics.

3. The Population Census of Shenzhen in 2010

Since the founding of the People’s Republic of China, a total of six population

censuses have been conducted in 1953, 1964, 1982, 1990, 2000, and 2010. Starting

from the 2000 census, a new feature was introduced including the questionnaires in

both a short form and a long form—a practice that continued in the 2010 census.

While the short form covered the standard items, such as age, sex, nationality,

registration status, registration type, and educational level, the long form was

administered to a 10 percent sample of the households in most provinces, with many additional items included.

Indeed, the long form of the questionnaire provided unprecedented scope for data collection. Items related to economic activity and unemployment were all relegated to

the long form of the questionnaire. In addition to the items about work status, industry

and occupation that also appeared in previous censuses in 1982 and 1990, questions

about work for pay in the week preceding the census, working hours, and source of

support for those not working permitted a basic but systematic investigation of the

labor force participation and employment/unemployment issues in the country. Thus the long form of the questionnaire provided a rich source of social and demographic data for policy planning.

Our analyses are based on both the aggregated data released by government

statistical agencies of different levels of jurisdictions and our own computation from a

10 percent sample of the long-form micro-data (representing 1‰ of the Shenzhen

population, N=132,783).

4. The Population Censuses/By-Census of Hong Kong, 1996-2011

The population census has been conducted every 10 years in Hong Kong since 1961,

with a by-census between two censuses. The research designs and items have stayed

the same since 1991. The Hong Kong censuses seek basic information on households

and their members and collect more detailed information on socioeconomic

characteristics for 10 percent of randomly selected households, similar to the design

of short-form and long-form questionnaires adopted in the population censuses in

China in 2000 and 2010. A by-census differs from a census in not having a complete headcount of the population but simply focusing its enquiry on the detailed characteristics of 10 percent of the households in the territory. Population censuses/by-censuses differ from other general household sample surveys in their sizable scale which enable them to provide statistics of high precision, even for population sub-groups and small geographical areas. Such information is vital to the government for planning and policy formulation. We employ a sample of the census/by-census micro-data representing 5 percent of the population of Hong Kong, which are made available to researchers by the Census & Statistics Department of the

Hong Kong SAR.

Since 1996, the population by-census of Hong Kong also started soliciting information on the physical address of households who are qualified to be included in the census/by-census, namely Hong Kong permanent residents who have been living at the household address for at least three months over the past six months or will be living at the household address for at least three months in the coming six months, including those who are outside of Hong Kong at the reference time (1=at this household address; 2=other addresses in Hong Kong; 3=China and Macao; 4=Other countries). The third category is more relevant to the issues we aim to study, i.e., those who maintain their residence in Hong Kong but are living in China/Macao for some

reason. While unfortunately mainland China and Macao are not coded separately in

the micro-data, we can assume that the majority of those falling in this category are

living in China, given the much smaller population of Macao than that of mainland

China.

Table 1 summarizes and compares the pros and cons of the four data sets for use

in the subsequent analyses. Our analyses are mainly based on the first two data sets, which supplement each other, whereas the population census data in both Shenzhen and Hong Kong can provide information about the reference groups, to which a comparison could help identify the distinct features of Hong Kong immigrants’ demographic profiles and socioeconomic attainment in Shenzhen.

Table 1. Relevant Data Sets on Hong Kong Immigrants in Shenzhen Data source Pros Cons 1. Survey of Hong Kong People Relatively outdated, the Living in Shenzhen, 2008 sample is limited to Representative sample of households with heads large size, including who are Hong Kong detailed information on permanent residents, their spouses and children without full coverage, not without rights of abode in comparable to other Hong Kong. groups (Hong Kong and Shenzhen) 2. The Alien Population Census of Very limited information China (Shenzhen), 2010. collected, and households Complete coverage, can with cross-border be compared to Shenzhen marriages (mainland local population spouses and children) are not covered. 3. The Population Census of China Dominated by rural (Shenzhen), 2010 As reference group only migrants without local hukou registration 4. Hong Kong Population - The reason why those - Captures those in China Censuses/By-Censuses, 1996-2011 people are in who maintain residence China/Macao is in Hong Kong and chart unknown. the temporal trends from - Those in mainland 1996-2011. China and Macao are - Information based on placed in the same the 2011 census data can category. be used as reference for

the 2008 survey and the

2010 census on Hong

Kong residents in

Shenzhen.

III. Hong Kong Immigrants in Shenzhen: An Overview

1. The Size

According to the National Bureau of Statistics’ Bulletin, entitled “Key Statistics on

Hong Kong, Macau and Taiwan Residents and Foreigners Who were Surveyed during

the 6th National Census in 2010”, there are 1,020,145 Hong Kong/Macao /Taiwan

residents and foreign citizens living in China, among whom 234,829 are Hong Kong

SAR residents, 21,201 are Macao SAR residents, 170,283 are Taiwan residents, and the remaining 593,832 are foreigners.

Based on the tabulation of the 5 percent of micro-data of the population census and by-census of Hong Kong from 1996 to 2011, Figure 1 plots the population of

Hong Kong residents in mainland China and Macao. Since those in Macao are negligible in size, the majority would be in the mainland. As shown in Figure 1, the share of this group in the total population has been increasing over time since Hong

Kong returned to Chinese sovereignty, from 2.08 percent in 1996 to 3.67 percent in

2006, with a slight decline to 3.23 percent in 2011. The estimated population is

235,520 persons, which is very close to the counts in China’s 6th population census

(234,829), even though the Census & Statistics Department of Hong Kong and

China’s National Bureau of Statistics adopted different enumeration criteria.

Figure 1. Hong Kong Residents in Mainland China and Macao

total size % HK Pop 300,000 6 251,100 250,000 235,520 5 211,620 200,000 4

3.67 150,000 128,900 3 3.18 3.23

Population 100,000 2 2.08 Percentage (%) 50,000 1

0 0 1996 2001 2006 2011 Year

Moreover, Guangdong province accommodates most of the alien population, with a total of 316,138 persons, followed by Shanghai with 208,602 persons, according to the 6th Population Census of China.7 Among those in Guangdong, not

surprisingly, the majority comes from the neighboring Hong Kong SAR. By the end

of 2010, there were 98,032 Hong Kong residents living in Shenzhen, accounting for

75 percent of the entire alien population and 87 percent of the 110,000 Hong Kong,

Macao and Taiwan residents in the city.8 This group is 61.8 percent larger than the

earlier estimation of 61,865 based on the 2008 survey data.9

7 Xiaogang Wu and Guangye He 2015. “The Evolution of Population Census Undertaking in China, 1953-2010” China Review 15(1):171-206. 8 We thank the Shenzhen Municipal Bureau of Statistics for providing access to the data. 9 Shenzhen Municipal Bureau of Statistics and Shenzhen Association of Statistics 2008, Implementation of the Survey on Hong Kong Residents’ Living Conditions in Shenzhen (unpublished document). 14

2. Demographic Profiles

Table 2 presents the age structure of Hong Kong immigrants by gender. Notably, the proportion of the population between 0 and 14 years old, especially those between 0 and 4 years old, is quite high (21.56 percent and 11.29 percent, respectively). The other age groups that account for significant proportions are those between 35 and 49 years old, who are predominantly men and are at prime work age. They are typically married with spouses with no right of abode in Hong Kong, and the abovementioned children aged 0-4 were born of these cross-border marriages.

Table 2. Demographic Profiles of Hong Kong Immigrants in Shenzhen (2010) Population Counts Percentage Age Male Female Total 0-4 6,037 5,027 11,064 11.29 5-9 3,150 2,761 5,911 6.03 10-14 2,166 1,991 4,157 4.24 15-19 1,220 1,113 2,333 2.38 20-24 1,226 923 2,149 2.19 25-29 2,445 2,134 4,579 4.67 30-34 4,172 4,185 8,357 8.52 35-39 6,046 5,152 11,198 11.42 40-44 7,144 3,670 10,814 11.03 45-49 8,361 2,268 10,629 10.84 50-54 7,266 1,507 8,773 8.95 55-59 5,226 1,479 6,705 6.84 60-64 3,535 1,259 4,794 4.89 65-69 1,754 731 2,485 2.53 70-74 1,341 573 1,914 1.95 75-79 778 419 1,197 1.22 80+ 536 437 973 0.99 Total 62,403 35,629 98,032 100.00

Such profiles matched the household structures reported in the 2008 survey data.

Based on the parameters from the 2008 survey, we may roughly extrapolate the total population of Hong Kong immigrants and their family members in Shenzhen to be about 190,000.

We compare demographic profiles of this group and three reference groups, namely the general population in Shenzhen (including migrants from elsewhere in mainland but not from outside China) from the 2010 population census, the general population in Hong Kong, and the Hong Kong residents who are reported as being in

China (including Macao) at the time when the 2011 population census is conducted.

Figure 2 demonstrates the unique pattern of age distribution for Hong Kong residents in Shenzhen vis-à-vis three other reference groups. Whereas the other three groups generally show a similar age pattern of unimodal distribution, with the peak varying with the degree of population ageing (aged 20-24 for the Shenzhen population, aged

45-49 for Hong Kong population, and aged 50-54 for Hong Kong residents in China as a whole), the Hong Kong residents in Shenzhen present a bimodal distribution of age, at ages 0-4 and 35-39 (with a sharp drop in proportion for those aged 15-19 and

20-24). In contrast, the Hong Kong residents in China enumerated by the Hong Kong census shows that, overall, they are even older than the general population in Hong

Kong.

Figure 2. Age Distributions of Hong Kong Residents in Shenzhen, the Shenzhen Population, the Hong Kong Population, and Hong Kong Residents in China 25.00

20.00

15.00

10.00

Percentage (%) 5.00

0.00

Age Group

Shenzhen Pop HK Immigrants in Shenzhen Hong Kong Pop HK Emigrants to China

As shown earlier in Table 1, the 2010 population census on Hong Kong

immigrants in Shenzhen contain only limited information and the 2008 sample survey could be a useful supplement. Figure 3 plots the age distribution for those from the census and from the survey, which are largely consistent with each other.

Figure 3. Age Distribution of Hong Kong Immigrants in Shenzhen Based on the 2008 Survey and the 2010 Census 14.00 12.00 10.00 8.00 6.00

Percentage (%) 4.00 2.00 0.00

Age Group

Survey 2008 HK Immigrants in SZ

Moreover, the population age-sex pyramids in Figure 4 show similar patterns.

Hence, the estimation from the 2008 survey could be seen as an integral part of the

2010 census on the Hong Kong immigrants in Shenzhen in spite of a two-year gap, especially for investigating their family lives and contacts with Hong Kong.

Figure 4. Population Pyramid of Hong Kong Immigrants in Shenzhen Based on the 2010 Census and the 2008 Survey

IV. Family Life and Living Conditions of Hong Kong Immigrants in Shenzhen

As suggested by their unique patterns of age distribution, most immigrants from Hong

Kong, unlike the majority of rural migrants from in-land provinces in Shenzhen, live with their family members. These family members may not necessarily be Hong

Kong permanent residents, and were therefore not covered in the 2010 census on the

18 alien population. We combine the 2008 survey and 2010 census with relevant information to depict their family life and living conditions in Shenzhen.

1. Household Structure

The 2008 survey collected information at both the household level and individual level. We will use the household as our unit of analysis to report the household composition, housing conditions, and household income and expenditure. In the 2008 survey, there are 4,223 households and 11,576 household members, of which 6,900 are Hong Kong residents who hold Hong Kong identity cards. In other words, 40.4 percent of the members of surveyed households are not Hong Kong residents. They are presumably mainland wives married to Hong Kong husbands and their children.

Household structure proxies for living arrangement, for which household size is one of the important measures. We classify the households of Hong Kong immigrants into four categories: one-person households, two-person households, three-person households and households with four or more persons. We compare them with the general population of Shenzhen in 2010 and of Hong Kong in 2011. As shown in

Figure 5, the proportion of one-person households is lowest among Hong Kong immigrants, but highest among the general population in Shenzhen, which is dominated by young rural migrant workers from inland provinces. On the other hand, the proportion of large households is lower among Hong Kong immigrants than among the general population in Hong Kong. Clearly, nuclear families with two to three persons dominate the former group.

Figure 5. Household Size of the Shenzhen Population, Hong Kong Immigrants in Shenzhen and the Hong Kong Population

100.00 12.19 21.90 32.61 80.00 17.03 31.16 60.00 33.54 23.52

40.00 34.10 24.5

Proportion (%) Proportion 20.00 37.24 12.83 19.38 0.00 Shenzhen Pop HK Immigrants in Hong Kong Pop Shenzhen

1-person household 2-person Household 3-person houshold ≥4-person Household

Since the 2008 survey asked about the relationship of the household head with other members but not the relationships among other household members, hereafter we only focus on households headed by a Hong Kong resident to examine the characteristics of social relationships between the household head and other

members.10 Eighty percent of all surveyed households have a Hong Kong resident as the household head. Table 3 further reports the percentages of various family relationships (including spouse relationship, child relationship, and parent relationship) between the household head and other members by household size.

10 The survey allowed the interviewed households to determine who the household head was. Therefore, some households may have a mainlander as the head but Hong Kong residents as members. 20

Table 3. Relationship of Other Household Members with the Household Head as the Hong Kong Resident, 2008 Relationship with Household Head Household Spouse or Any Family Classification Spouse Children Parents Children Relationship 1-person - - - - - Household 2-person 66.50 4.57 1.58 71.07 72.65 Household 3-person 89.80 88.43 5.29 94.22 95.98 Household ≥4-person 89.19 92.64 21.62 96.40 97.75 Household

The results in Table 3 show that, among all the households, the percentage of households with a Hong Kong household head having any family relationship with other members is high. The percentage among two-person households is as high as

72.65 percent; it is up to 95.98 percent among three-person households and reaching

97.95 percent among four-person (or more) households. Moreover, the main family relationships are spousal and/or parent-child relationships. The relationship is spousal in 66.50 percent of all two-person households and nearly 90 percent in all households with three or more members. The relationship is between parent and child in 88.43 percent of all three-person households and 92.46 percent of all four-person (or more) households.

The results above are quite close to the percentages of household with any family relationship. We can thus infer that 2-3 person nuclear families with spousal or parent- child relationships are quite common among households with Hong Kong residents. It 21

should also be noted that, while it is rare for the parents of the household head to live

in the two-person and three-person households, among households with four persons

or more, 21.62 percent have co-residing parents, suggesting that some Hong Kong

residents live with their parents in Shenzhen.

On the other hand, it is also relatively uncommon for those co-residing members

to be Hong Kong residents. As Figure 6 shows, among all the spouses of household

heads who are Hong Kong residents (85.94 percent female), only 40.92 percent hold

Hong Kong identity cards. Among all children of household heads who are Hong

Kong residents, only 58.21 percent have Hong Kong identity cards.

Figure 6. Percentage of Spouse/Children Having Hong Kong Identity (2008)

100% 41.78 80% 59.08

60%

40% 58.21 40.92 Percentage (%) 20%

0% Spouse of Hong Kong Children of Hong Kong Household Head Household Head

With HK ID Without HK ID

These two pieces of statistics are the result of “cross-border marriage,” as we pointed out in the introduction. In other words, usually only the man/husband is from

Hong Kong, whereas usually the woman/wife is from the mainland. The situation that

22 one cannot obtain Hong Kong identity cards through family relationships also extends from spouses to children. In other words, the parents’ generation (usually the father) has the right of abode in Hong Kong but not the children.

2. Duration and Reasons of Staying in Shenzhen

The family living arrangement of Hong Kong residents in Shenzhen can be further observed by looking at how long they have been staying in Shenzhen and for what reasons they choose to live there. While answers to the question in the 2008 survey and 2010 census were classified differently, the pattern is quite clear. These people are indeed long-term stayers and live with their families. According to the 2008 survey,

56.73 percent (24.64 +32.09 = 56.73) of Hong Kong residents have been staying in

Shenzhen for six years or more; According to the 2010 census, 73.10 percent have been staying for more than 1 year and 35.61 percent have been living in Shenzhen for over five years. These results are shown in Table 4.

Table 4. Duration of Stay in Shenzhen among Hong Kong Residents 2008 Survey 2010 Census Duration Total % Duration Total % Less than 2 years 747 12.39 <3 months 12,538 9.54 2-5 years 1,861 30.88 3-6 months 8,903 6.77 6-10 years 1,485 24.64 6-12 months 13,925 10.59 Above 10 years 1934 32.09 1-2 years 19,819 15.08 2-5 years 29,400 22.40 Above 5 years 46,809 35.61 Total (N) 6,027 100.00 131,434 100.00 Notes: The data in the table describe the alien population in Shenzhen, of which approximately 75 percent are Hong Kong residents.

Why do they choose to move to and stay in Shenzhen? In the 2008 survey, respondents were asked to list the top three reasons. Family reunion, work or study in

Shenzhen, lower living cost, lower property price/rental cost, proximity to relatives and friends are ranked in higher proportions (see Table 5). According to the 2010 census, 42.89 percent moved to Shenzhen for long-term settlement, and 28.55 percent did so for business and work.

Table 5. Reason for Staying in Shenzhen Top 3 Reasons of Staying (2008 Survey) Purpose of Staying (2010 Census) 1st (%) 2nd (%) 3rd (%) Number % Family Reunion 57.09 18.96 0.12 Business 23,344 17.76 Work or study 22.95 0.40 0.19 Work 14,188 10.79 Lower living cost 4.08 21.49 17.01 Study 8,246 6.27 Lower property Settlement 0.51 5.07 26.37 price/rental cost 56,377 42.89 Living environment 1.49 11.78 25.37 Visit relatives 12,414 9.45 Proximity to relatives 4.2 16.14 11.70 Other 16,865 12.83 Total 131,434 100% Notes: The data in the table describe the alien population in Shenzhen, of which approximately 75 percent are Hong Kong residents.

The information on duration and reason of stay presented above suggests that

24 nuclear family-oriented living arrangements are prevalent among Hong Kong residents living in Shenzhen, resulting from cross-border marriages and children born of those marriages. In this regard, Hong Kong residents in Shenzhen are of a distinct group—they have truly immigrated to and become regular residents in Shenzhen.

3. Housing Conditions

Given the fact that most Hong Kong immigrants in Shenzhen lead a family life, we proceed further to describe the housing conditions in Shenzhen. In general, for those households with at least one member being a Hong Kong resident, the housing conditions are fairly good. As shown in Table 6, more than half (54.06 percent) live in their own properties, with an average floor area per capita of 48.21 square meters, whereas 40.47 percent live in rented flats, with an average floor area of 26.35 square meters per capita. Among households with their own properties, 70.87 percent have no mortgage loan, and for those who do, the average monthly mortgage one month prior to the survey time point was approximately 3,000 yuan. Among tenants, the average rental payment in the month prior to the survey was approximately 2,000 yuan.

Table 6. Tenure and Floor Area of Accommodation Per Capita of Hong Kong Immigrant Households in Shenzhen (2008) Tenure of Number (Percentage) of Floor Area of Accommodation per Accommodation Households Capita (m2) Self-owned 2283（54.06） 48.21 Rented 1709（40.47） 26.35 Other 231（5.47） 37.77 Total 4223（100） 38.79

Slightly more than one-third of all Hong Kong immigrant households fully own

the properties they live in without any loans. For the remaining two-third of households, an average rental cost or mortgage of 2,000-3,000 yuan per month is indeed low by Hong Kong standard, but may be medium-high with reference to the income levels and housing costs in Shenzhen at that time. We also calculate the ratio of housing expense to total household income. It is generally believed that the burden of housing expense is heavy if the ratio exceeds 30 percent. The average ratio is only

11.15 percent if owners with no mortgage loan are included in calculation, and is about 20 percent if they are excluded. Moreover, the ratio is still less than 30 percent for owners with mortgage and 20 percent for the tenants (see Table 7 for details).

Therefore, by and large, the housing expense for households of Hong Kong immigrants is not a heavy burden.

Finally, we find that for the households of Hong Kong immigrants, the ratio of monthly living expense (excluding property mortgage and rental payment) to total household income is slightly more than 40 percent.

Table 7. Housing Expense and Living Cost of Households of Hong Kong Residents in Shenzhen (2008) Average Share of Housing Average Share of Household Classification Expenditure in Household Living Cost in Income Household Income All households 11.15 48.64 Households with outstanding 19.54 46.59 mortgages Self-owned with Mortgage 25.68 41.77 Rented 17.47 48.47

4. Spatial Distribution

Where do Hong Kong immigrants and their families live in Shenzhen? Figures 7a and

7b plot the spatial distributions of surveyed respondents in 2008 and 2010,

respectively. Not surprisingly, the majority of Hong Kong residents tend to concentrate in the border area with immigration checkpoints nearby, including communities (jiedao) such as Fubao (福保), Futian (福田) and Shatou (沙頭), which are close to the Fu Tian (福田) checkpoint, as well as streets such as Nanhu Street (南

湖), Huangbei Street (黃貝), and Cuizhu Street (翠竹), which are close to the Luohu

(羅湖) checkpoints.

This also reflects the tendency of the Hong Kong residents in Shenzhen to cross

the border frequently. However, given that over half of the people in this group also

work in Shenzhen, we can see from Figures 7a and 7b that many do live in other

districts (including part of Xixiang (西鄉) of BaoAn (寶安) district, Buji (布吉) of

LongGang (龍崗) district, and Nanshan (南山) district).

Figure 7a. Spatial Distribution of Hong Kong Immigrants in Shenzhen, 2008

Figure 7b. Spatial Distribution of Hong Kong Immigrants in Shenzhen, 2010

Figures 8a and 8b further present the spatial distributions of Hong Kong residents living in Shenzhen by two age groups: those aged between 0 and 14 and those who are aged between 15 and 64 (working age). We can see clearly that more of the former are concentrated near the border, whereas some of the latter are located

28 outside of Luohu (羅湖), Futian (福田) and Nanshan (南山) districts, where manufacturing factories are located.

Figure 8a. Spatial Distribution of Hong Kong Immigrants in Shenzhen (0-14 Years Old), 2010

Notes: The data in the figure describe those immigrants from Hong Kong, Macau and Taiwan in Shenzhen, of which about 87 percent are from Hong Kong.

Figure 8b. Spatial Distribution of Hong Kong Immigrants in Shenzhen (15-64 Years Old), 2010

Notes: The data in the figure describe those immigrants from Hong Kong, Macau and Taiwan in Shenzhen, among which about 87 percent are from Hong Kong.

V. The Twin-City Life of Hong Kong Immigrants in Shenzhen

Because of the geographic proximity and convenience of travel between Shenzhen

and Hong Kong, the cross-border activities of these Hong Kong immigrants in

Shenzhen and their ties with Hong Kong deserve special attention. Notwithstanding

the fact that these people have immigrated to Shenzhen, about half of them still

maintain their regular residence in Hong Kong, of which public rental housing and private housing each accounts for 42 percent; 82 percent of their residence in Hong

Kong are self-occupied; 12 percent are occupied by relatives and other family members, whereas only 4 percent are rented out. The maintenance of the residence on

both sides of the border provides further evidence of a twin-city life led by this group

and their families. We report their frequency of returning to Hong Kong and the main

reasons, and the arrangement of education for their school-age children, which are

available only in the 2008 survey data. The findings could have important

implications for policy on the Hong Kong side.

1. Reasons for Returning to Hong Kong and Frequency

Table 8 shows a higher frequency of their returning to Hong Kong in the past six

months before the survey. As much of the employed population work in Hong Kong, they visit Hong Kong very often— 47.98 percent visit Hong Kong four times or more a week. Similarly, because many children and adolescents attend schools across 30

borders, 28.29 percent of this group visit Hong Kong four times or more a week. In

contrast, only 6.21 percent of the non-working population visit Hong Kong four times

or more per week. 32.68 percent (6.21 + 11.06 + 15.41 = 32.68) visit Hong Kong once

a week or more; 79.26 percent (31.18 + 12.28 + 14.48 + 21.32 = 79.26) come back to

Hong Kong at least once a month. Only 5.56 percent have not returned to Hong Kong during the six months before the survey.

Table 8. Frequency of Returning to Hong Kong in the Past Six Months (2008) Working Non-working Total Children Population Population More than 4 times a 31.18 47.98 6.21 28.29 week 2-3 times a week 12.28 17.33 11.06 2.16 Once a week 14.48 16.62 15.41 8.09 At least once a month 21.32 11.01 33.06 28.37 At least once a quarter 8.01 3.40 11.66 13.54 At least once every 6 7.17 2.68 10.84 12.34 months Never 5.56 0.99 11.76 7.21 Total (N) 100 100 (6,027) 100 (2,943) 100 (1,836) (1,248)

Table 9 lists the top three reasons for returning to Hong Kong. Overall, they

include working/studying in Hong Kong, visiting relatives or friends, and going for

leisure or entertainment. However, the main reasons vary by group. Notably, for children and adolescents and other members of the non-working population, using health care services in Hong Kong is listed as a very important reason for returning.

Table 9. Main Reasons for Returning to Hong Kong (2008) Main Reasons Main Reasons Main Reasons Main Reasons among among Total among Working among Non-Working Youth Population Population Population 1. Working in Hong 1. Working in Hong 1. Family in Hong 1. Family in Hong Kong /Business Kong /Business Kong/Visiting Kong /Visiting trip trip relatives or friends relatives or friends 2. Family in Hong 2. Family in Hong 2. Going for leisure 2. Studying in Hong Kong /Visiting Kong / Visiting or entertainment Kong relatives or friends relatives or friends 3. Going for leisure 3. Going for leisure 3. Using health care 3. Going for leisure or or entertainment or entertainment services in Hong entertainment Kong - - - 4. Using health care services in Hong Kong

Notes: Other reasons are also given in the questionnaire; here we only list the top reasons.

In the six months prior to the survey, 78.12 percent of the Hong Kong immigrants spent their holidays in Shenzhen, 9.72 percent in Hong Kong, and 10.97 percent in both places. When asked about whether there was intention to change residence in the next five years, 63.27 percent said no, 19.13 percent said yes, whereas 17.60 percent had not yet decided.

2. Education for Children and Adolescents

Recent years have witnessed a rapid growth in “Hong Kong children” born to mainlander parents resulting in “cross-border students” in the group living in

Shenzhen. The phenomenon has gained widespread attention from governments and

the public in both Hong Kong and Shenzhen.

In the 2008 survey, this group corresponds to the prospective students (including those currently not in school) and currently enrolled students. They account for about one-fifth of the total population of Hong Kong residents living in Shenzhen (see Table

2). This percentage is very close to the percentage of age group 0-14 among all Hong

Kong residents living in Shenzhen from the data of the 6th Population Census of

China (Figure 3). Thirty percent of them are prospective students and 70 percent are

enrolled students. For enrolled students, a large proportion is studying in

kindergartens or primary schools, with only a small percentage studying in secondary

schools, and a very small number in tertiary institutions.

Table 10 shows that among all enrolled students, 54.78 percent are studying in

Shenzhen, while 41.89 percent are studying in Hong Kong. The majority of

kindergarten students are studying in Shenzhen (64.21 percent), suggesting that many

parents worry that such kids are still too young to travel across the border on a daily

basis. For those in primary and secondary schools, the percentages of “cross-border

students” are 51.24 percent and 42.47 percent, respectively.

Table 10. Location of Schooling for Hong Kong Children and Adolescents Living in Shenzhen (2008) Shenzhen (%) Hong Kong (%) Other (%) Total (N) Kindergarten or 64.21 34.32 1.48 100 (271) below Primary 46.56 51.24 2.20 100 (363) Secondary 55.91 42.47 1.61 100 (186) Tertiary or above - - - 100 (49) All Enrolled 54.78 41.89 3.34 100 (869) Students

Moreover, when asked about the intention to study in Hong Kong in the future,

there is a clear difference between prospective students and those already studying in

Shenzhen. As shown in Table 11, 63.66 percent of prospective students said that they intend to study in Hong Kong in the future, whereas for those already studying in

Shenzhen schools, the percentage who intend to study in Hong Kong is 43.28 percent.

Table 11. Intention to Study in Hong Kong in the Future for Hong Kong Children and Adolescents Living in Shenzhen (2008) Yes No Not Yet Total (N) Decided Prospective Students 63.66 8.22 28.12 100 （377） Students Enrolled in 43.28 23.11 33.61 100 Shenzhen Schools （476） Total 52.29 16.53 31.18 100 （853）

The results above show that parents in general want their children to study in

Hong Kong, especially those children who have not enrolled in a school yet. At the

same time, it should also be noted that a considerable proportion of parents have not

yet decided if they want their children to receive education in Shenzhen or Hong

Kong.

VI. Hong Kong Immigrants in the Labor Force

The above analysis shows that Hong Kong immigrants in Shenzhen mostly live there

with their family members. The typical household consists of a Hong Kong man in his

30s and 40s, a mainland wife, and 1-2 young children. Given most bi-modal age

distribution, husbands/fathers are expected to work as the bread earners. In this

section, we paint a more detailed picture of their employment and work.

To better understand the economic and social forces underlying Hong Kong

emigration to Shenzhen and the impact of Hong Kong immigrants in China on Hong

Kong’s labor market, it would also be helpful to compare the socioeconomic profiles

of working-age immigrants in Shenzhen with those of the labor force in both

Shenzhen and Hong Kong, respectively.

1. The Employment Rate, and Education of the Working-age Population

According to the 6th Population Census of China, among all the Hong Kong residents

living in Shenzhen, 53.09 percent are employed. But as 21.56 percent of Hong Kong

residents are actually aged 0-14, this figure does not reflect the actual situation of

Hong Kong adult immigrants in Shenzhen.

We thus restrict the analysis to the population aged between 15 and 59

(N=65,537), of which 52,043 indeed are working. The proportion (79.4 percent) is

much higher than the corresponding figure in Hong Kong (67.97 percent), albeit still

lower than that for the general population in Shenzhen (84.47 percent).

Figure 9. Proportion of Hong Kong Residents in Shenzhen Who are Employed (Aged 15- 59), in Comparison to Two Reference Groups

100% 20.6 17.78 32.03 80%

60% 79.4 82.22 40% 67.97

20%

0% 2010 HK Immigrants 2010 SZ Population 2011 HK Population in SZ

Employed Unemployed

Figure 10 presents educational attainment of Hong Kong residents aged 15 or above, with comparisons to the populations of Shenzhen and Hong Kong. As indicated, the educational profiles do not differ much between Hong Kong residents in Shenzhen and those in Hong Kong. Hong Kong residents in Shenzhen seem to be more educated than the general population in Shenzhen, which could be largely attributed to the lower education of the majority of rural migrants in Shenzhen.

It should be noted that from time to time, the Census & Statistics Department of the

Hong Kong SAR releases the social data collected via the General Household Survey and the thematic report on Hong Kong residents working in mainland China. We reconstruct the number and the percentage of Hong Kong residents who worked in mainland China during the past 12 months and still worked there at the time of enumeration. Figure 11 plots the trend from 2001 to 2011. As shown in the figure, the

trend of Hong Kong residents working in mainland is largely consistent with that

shown in Figure 1 based on our own calculation using the population census data of

Hong Kong. The trend increases from 5.4 percent in 2011 to 7.2 percent in 2004, and

then drops to 4.9 percent in 2011. According to the most recent special report in 2011,

the size of this group is 170,100. Approximately 89.0 percent of this group work in

Guangdong Province, among which 55,100 or 32.4 percent work in Shenzhen. The

number of Hong Kong residents working in Shenzhen started declining from its peak

of 90,400 in 2004 to 55,100 in 2011.11

However, the above group is different from the group this report aims to analyze,

as the General Household Survey could not capture those people within the Hong

Kong resident population who did not have a regular home base in Hong Kong at the time of the survey. Therefore, most Hong Kong residents living in Shenzhen were not covered in the household survey conducted in Hong Kong. We combine these two groups to gain a full understanding of the dynamics of economic integrations between the two cities.

11 See Census & Statistics Department of the Hong Kong SAR, “Hong Kong Residents Working in the Mainland of China.” Social data collected via General Household Survey, Special Topics Report No. 33, 42, 49, and 57. http://www.censtatd.gov.hk 37

Figure 10. Educational Attainment of Hong Kong Immigrants in Shenzhen, Shenzhen Residents and Hong Kong Residents

47.5 50.0 45.0 40.0 32.0 35.0 30.1 26.8 30.0 24.9 26.4 25.0 20.0 17.4 20.0 15.4 16.4 15.0 10.7 8.6 8.9 9.0 10.0 5.9 5.0 0.0 Primary Lower Upper 3-year Univerity or Secondary Secondary College Above

HK Immigrants in Shenzhen Shenzhen Pop Hong Kong Pop

Figure 11. Trends of Hong Kong Residents Who Worked in Mainland China during the Past 12 Months Prior to the Survey Time Total Size Rate 250 235.4 8 226 228.9 212.6 7 200 187.6 7.2 188.2 176.3 7 175.1 6.8 6 5.9 6 150 5 5.4 5.4 4.9 4 100

3 Percentage (%)

Population (Thousands) 50 1

0 0 2001 2002 2003 2004 2005 2008 2009 2011 Year

2. Occupations and Industries

Occupation and industry are two important structures that characterize the socioeconomic standings of workers in labor markets. The 2008 survey adopted the coding schema of occupation and industry similar to those in the Hong Kong 38 population census in 2011, whereas the classifications of occupation and industry are consistent in the 6th Population Census for both domestic and alien populations. For convenience, we compare Hong Kong immigrants in Shenzhen with residents in Hong

Kong based on the data from the 2008 survey; and with Shenzhen residents based on the data from 2010 population census. From Figure 12a, we can see clearly that a higher percentage of HK immigrants in Shenzhen are in the “Managers and

Administrators” occupation category. Meanwhile, higher percentages of HK immigrants are also observed in occupation categories such as “Service and sales workers” and “Plant and machine operators and assemblers”. This indicates a spindle- shaped pattern of occupations held by HK immigrants in Shenzhen: higher percentages in both high-status and relatively low-status jobs. At the same time, the percentages of “Professionals or Associate professionals” and “Clerical support workers” among HK immigrants in Shenzhen are much lower than those among residents in Hong Kong.

Figure 12b shows the difference in occupational structure between Hong Kong immigrants and local residents in Shenzhen. Despite the use of different occupational classifications, the 2008 survey and 2010 census both show that about one-third of

Hong Kong immigrants in Shenzhen are engaged in professional/managerial occupations, slightly lower than the proportion for people staying in Hong Kong, but

39 twice as high as that for residents in Shenzhen. Notably, about one-fourth of Hong

Kong immigrants are production and transportation operators and related workers

(Figure 12b).

Figure 12a. Occupations of Working-age HK Immigrants (2008) in Shenzhen and Residents in Hong Kong (2011)

Elementary occupations 100% 9.21 13.28 15.70 5.43 Plant and machine operators and assemblers 80% 7.94 8.80 17.49 Craft and related workers 60% 21.67 16.78 Service and sales workers 7.06 40% 14.99 Clerical support workers 28.14 20% 22.57 Professionals/Associate 10.93 professionals 0% Managers and administrators HK Immigrant in Hong Kong Pop Shenzhen

Figure 12b. Occupations of Working-age HK Immigrants in Shenzhen and Residents in Shenzhen (2010)

Production, transport 100% equipment operators and 25.1 related workers

80% 47.6 Agriculture, and related

26.3 60% Commerce and service industry personnel 13.7 40% 27.2 Clerk and related workers 10.9 20% 33.9

14.0 Professional and 0% manager/administrator HK Immigrants in Shenzhen Pop Shenzhen

We also compare the industry distribution between Hong Kong immigrants and

the population in Hong Kong, using the data from the 2008 survey and the 2011 Hong

Kong population census. Figure 13 shows that, compared to their counterparts in

Hong Kong, Hong Kong immigrants in Shenzhen are more likely to be in such

industries as manufacturing, construction, and transportation, storage, communication,

and less likely to be in industries such as wholesale, retail, import/export trade, public

administration, community, social and personal service, as well as financing, banking,

insurance and business services. Such disparities in industrial sectors of employment

may reflect the different and complementary economic structures of the two cities.

Surprisingly, only 9.34 percent of Hong Kong immigrants work in financing, banking,

insurance and business services, in sharp contrast to 20.70 percent of the working population in Hong Kong. With the rapid development of the finance sector in

Shenzhen, opportunities abound for Hong Kong professionals in the future.

Figure 13. Industries of Working-age HK Immigrants in Shenzhen (2008) and Residents in Hong Kong (2011)

Others 0.83 100% 4.79 9.00 19.69 Public administration, community, social and personal service 80% 19.13 13.16 Transportation, storage, communication 9.85 8.47 60% Restaurants and Hotels 9.34 20.70 Financing, Banking, Insurance 40% 18.25 and Business Services

24.45 Wholesale, Retail, 17.36 Import/Export Trade 20% 8.37 Construction 12.27 4.34 0% Manufacture HK Immigrants in Residents in Hong Shenzhen Kong

In Table 12, we compare the industry distribution between Hong Kong immigrants and residents in Shenzhen, using the industry coding system consistently adopted in the 2010 population census and the census on the alien population. Results show similar findings with an even broader picture. The percentage of Hong Kong immigrants in the manufacturing industry is higher than that of residents in Hong

Kong (12.27 percent vs. 4.34 percent) but much lower than that of the working population in Shenzhen (12.27 percent vs. 48.2 percent). On the other hand, the proportion of Hong Kong immigrants in the finance and banking sector is lower than the working population in Hong Kong (9.34 percent vs. 20.7 percent) but higher than the Shenzhen local working population (9.34 percent vs. 1.4 percent). Such comparisons of the labor markets on the both sides of the border could help identify niche employment sectors for Hong Kong residents in Shenzhen.

Table 12. Industries of Working Hong Kong Immigrants and Shenzhen Residents (China Population Census, 2010) Hong Kong Shenzhen

Immigrants Residents Industry N Percent N Percent Farming, Forestry, Animal Husbandry and Fishery 580 1.1 2144 0.2 Mining 105 0.2 4570.1 Manufacturing 7,291 14.0 416,841 48.2 Production and Distribution of Electricity & Gas 825 1.6 2,761 0.3 Construction 4,762 9.2 21,441 2.5 Wholesale & Retail Trades 6,952 13.4 123,761 14.3 Transportation, Storage and Postal Services 3,303 6.3 28,569 3.3 Hotels and Catering Services 6,211 11.9 32,457 3.7 Information Transmission and Service 4,456 8.6 123,761 14.3 Financial Intermediation 3,810 7.3 12,265 1.4 Real Estate 1,620 3.1 18,203 2.1 Leasing and Business Service 3,516 6.8 14,047 1.6 Scientific Research and Technical Service 518 1.0 5,824 0.7 Management of Water, Conservancy, Environment 367 0.7 2,778 0.3 and Public Facility Service to Households, Repair and Other Service 4,737 9.1 21,015 2.4 Education 922 1.8 10,717 1.2 Healthcare and Social Work 453 0.9 6,321 0.7 Culture, Sports and Entertainment 895 1.7 7,685 0.9 Public Service and Social Organizations 643 1.2 14,616 1.7 International Organization 77 0.1 5 0.0 Total (N) 52,043 100.0 865,668 100.0

VII. Summary, Conclusions, and Policy Implications for Hong Kong

Using the data from a sample survey conducted in 2008 on Hong Kong residents living in Shenzhen, the 6th Population Census of China collected in 2010 (Shenzhen), and the Hong Kong 2011 Population Census, this report presents a comprehensive and systematic analysis of the profiles of Hong Kong immigrants in Shenzhen at both

43 the household level and individual level, with particular attention to certain sub- groups—those currently in the labor force and cross-border commuters. Moreover, it also compares the working-age population of Hong Kong immigrants in Shenzhen with their counterparts on the two sides of the border. Our main findings are summarized as follows:

— Special demographic composition. The total population of Hong Kong

immigrants in Shenzhen is approaching 100,000. They are mainly household

members of nuclear families consisting of 2-3 members, who live close to the

immigration checkpoints along the Shenzhen-Hong Kong border. The

nuclear family living arrangement is generally characterized by three

features. First, the breadwinner of the family is usually the husband/father,

who mainly works in Hong Kong. Second, the wife/mother mostly does not

work. Even if she does, they do so in Shenzhen. Third, a large proportion of

children and adolescents aged between 0-14 are studying in Hong Kong. In

addition, another type of Hong Kong immigrants are retired elderly who

receive pension or government subsidies from Hong Kong but live in

Shenzhen.

We need to distinguish between Hong Kong immigrants and their family

members in Shenzhen. The former refers to those who have the right of

abode in Hong Kong, while the latter refers to those who have a family

relationship with the former. They could be Hong Kong residents but could

also be mainlanders (but future Hong Kong residents). Therefore, there could

be many non-Hong Kong residents in Hong Kong immigrant families. Based

on the typical family size of 2-3, the size of Hong Kong immigrants and their

family members could range between 200,000 and 300,000. Such mixed

family compositions are the result of the prevalence of “cross-border

marriage” since China opened up and the sky-rocketing number of Hong

Kong children born to mainland parents in recent years.

— Substantial socioeconomic differentials. While Hong Kong immigrants in

general fare better than Shenzhen residents in terms of socioeconomic status,

there is a huge internal heterogeneity among this group: some are highly

educated who are engaged in managerial and professional jobs, whereas a

significant proportion of this group with only secondary school education

work in the ordinary service industry, and even skilled and elementary work

in the construction and transportation industries. Such differentiation in

education and occupation led directly to the disparity in their individual and

family income. Home ownership and area of residence are also important

indicators of socioeconomic differentiation. About one-third of Hong Kong

immigrants in Shenzhen are home owners who have already paid off their

mortgage loans. The mortgage/rent burden of the remaining two-thirds is also

reasonable.

— Typical “twin-city life.” These Hong Kong immigrants have been members

of the residential population in Shenzhen for an extended period of time,

spending most of their holidays in Shenzhen, and having no plans to change

residence in the next five years. In this sense, they are immigrants who have

settled down across the border in Shenzhen. On the other hand, they

frequently travel back to Hong Kong, mainly for work/school, visiting

relatives and entertainment. The elderly and children/adolescents also return

to Hong Kong to take advantage of health services provided by Hong Kong’s

public hospitals. Moreover, about half of them maintain a regular residence

in Hong Kong, mainly for self-use. These people lead a “twin-city life”.

While it is common for children and parents in the 2-3 person nuclear

families, to live together, many men (husbands/fathers) frequently travel to

Hong Kong for work and many school-age children travel across the border

for education on a daily basis.

— Unique working-age group. Hong Kong immigrants in Shenzhen are more

likely to work than Hong Kong residents and slightly less likely to work than

the working-age population in Shenzhen. They tend to be older than the

working-age population in Shenzhen but younger than the working-age

population in Hong Kong (and those who travel to mainland China to work

but maintain their residence in Hong Kong). Their educational levels are

comparable to the population in Hong Kong but higher than the population in

Shenzhen. Among those who are employed, we see higher percentages in

both high-status occupation such as “managers and professionals” and

relatively low-status occupations like “service and sales workers” and “plant

and machine operators and assemblers.” Moreover, with regard to the

industry distribution among those who are employed, a higher proportion are

in the manufacturing sector and also in service sectors such as “wholesale &

retail traders”, “hotel and catering service,” and financial intermediation.

The summary and findings bear important messages for policy on the Hong Kong side. First, Hong Kong should design a better way to collect the systematic information on Hong Kong immigrants and their family members in Shenzhen. Hong

Kong immigrants and their families in Shenzhen have gradually evolved into a special social group of a scale that cannot be neglected. They should be placed in a broad picture of the economic and social activities of the populations on both sides to understand the increasing interaction, and perhaps also the recent escalating tensions

between Hong Kong and Shenzhen. Regularly updated information on the Hong Kong

residents living in Shenzhen, who serve as an important facilitator of economic and

social integrations between Hong Kong and Shenzhen, would help understand their changing situations and various special challenges they are facing and foresee their

demands for the provision of education, health care and other public services in Hong

Kong. The data available for our analyses are up to 2010 only on both sides. The data

from the population census and general household survey suggest that the number of

Hong Kong residents who had a home base in Hong Kong but lived in mainland

China (including Shenzhen) at the time of survey had started declining in recent years.

Hong Kong immigrants presumably would have the same trend in returning to Hong

Kong, given the upgrading of the industrial structure and the increasing living costs in

Shenzhen. Statistical agencies on both sides of the border should communicate to add common questions in household surveys or by-censuses/mini-censuses to collect data on a regular basis, together with administrative records on entries/exits to facilitate the making of public policy.

Second, Hong Kong better coordinate the provision of services to Hong Kong immigrants and their families in Shenzhen. Many cross-border students travel to Hong

Kong to attend school or use free medical care in public hospitals. This brings high demand for public services such as school places and medical services, especially in

the neighboring area in the North District. Hence, the HKSAR government should

consider promoting cooperation with the Shenzhen municipal government in

providing education, health care and other social services, to minimize the impact of

the cross-border floaters on the resident population in Hong Kong.

Finally, the HKSAR government should take advantage of the opportunity of industrial upgrading, especially the rapid development of the Qianhai Shenzhen-Hong

Kong Modern Service Industry Cooperation Zone. A comparison of Hong Kong immigrants who are working in Shenzhen with their counterparts in Hong Kong shows that a low percentage of the former population is in the financing sector. As a leading international financial center, Hong Kong has plenty of talent in this sector, as well as in other service sectors. The government should identify certain niche economic sectors and take the initiative to encourage more people to work across the border, which would enable Hong Kong to solve both economic and social problems.

Appendix

Appendix 1. Questionnaires of “Survey of Hong Kong People Living in Shenzhen”, 2008

Appendix 2. Enumeration Form of the Population Census, 2010