Last Friday, the full Shenzhen Metro Longhua Line enjoyed its curtain raising. It is the second project in which the MTR Corporation has participated on the mainland. However it is a common sense that investing in railways is hardly profitable, especially in mainland, where most railways is state owned, the MTR Corporation is still confident that the once successful ‘Rail-plus-property formula’ will work again this time.
They are not just theoretican.
The Longhua Line is not as ordinary as other railways that MTR built, like the No. 10 railway in Beijing or any other railway that MTR once contributed in HKG. It is a huge step towards the integration of service economy of Shenzhen and HKG, since it bonds the two cities even closer—the commuting time between the two cities can be cut to an hour.
The effect is obvious: Hong Kongers who cannot afford the housing can choose to buy a house in the nearby Shenzhen, which can in some extent boost, or say save, the real estate industry in Shenzhen. And it is for sure that HK authority is not the only one observed the huge potential profit lie in the integration of the two cities, mainland side also saw it a cream cake. Vice versa, the rich in Shenzhen will find it easier to go to HKG for shopping and like many rich Chinese people always like to do: spend money on luxuries. Above is just some sweetness that the people in these two cities can directly enjoy. We know it is far from over.