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Hong Kong’s status as a major container port hub could suffer a severe blow if mainland China further relaxes cabotage rules.

A new report by respected Hang Seng Management College (HSMC) claims the world’s fifth-largest port could lose as much as 2.4m teu in transhipment traffic or 14% of its throughput, should China’s cabotage rules, allowing foreign-flagged vessels to carry domestic cargo between Chinese ports, be fully relaxed.

Currently, only vessels registered in China or flying the Chinese flag are permitted to conduct ...

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