Following the news that Wal-Mart had gained approval to open five supermarkets in Beijing, the world’s largest retailer has now announced that it will move a sourcing and logistical centre from Hong Kong to Shenzhen, southern China.

The advantages for the retailer are clear, with tax benefits offered by the Chinese government, and the importance of China as a source of goods growing after entry to the World Trade Organisation. Last year Wal-Mart purchased goods worth $4 billion from China, and this is expected to increase by 20% this year. The move could prompt other trading houses based in Hong Kong to move over to the mainland.

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