Video link: https://youtu.be/jAYzGkC8v1g
Pawnshops
Director: Shu Yau Shing (3036067597)
In the mid-19th century, as Hong Kong opened as a free port, a large number of immigrants flooded into Hong Kong in search of developmental opportunities. Many new immigrants were economically unstable, and pawnshops became a means for them to resolve short-term financial difficulties, helping many families overcome tough times to a certain extent.
Entering the 1990s, as the contemporary banking lending system gradually improved, pawnshops faced challenges from bank personal loans, credit card overdrafts, and finance companies, and gradually began to be outcompeted. Faced with financial issues, many workers chose to take loans without needing to pawn items. Although some individuals without income proof or those from negatively perceived industries still chose pawnshops, the increasing convenience of loan procedures led to dwindling business for pawnshops. Facing strong competitors, industry insiders could only lament as many pawnshops chose to close down, leaving the remaining shops to become part of Hong Kong’s cultural industry.
Although the economic development and changes make pawnshops become part of Hong Kong’s past cultural heritage, they reflect the city’s historical trajectory from a small fishing village to an international metropolis. They hold a special position in Hong Kong’s culture and history and have a deep emotional connection with Hong Kong people.
In the new era, the traditional business of pawnshops, still play a special role in people’s daily lives:
Firstly, pawnshops can act as a free “treasure appraisal service.” Staff at pawnshops need to evaluate the authenticity and quality of items, and appraise them accordingly. Secondly, pawnshops can also serve as temporary “safes.” For example, when going on a trip, one can pawn valuable items at a low price to a pawnshop, and redeem them later at a low interest rate. So that, one can obtain high security for a very low cost. Thirdly, pawnshops can also be a great place for young people to treasure hunt. Because the items sold in pawnshops are authenticated and quality-checked by experts and are well maintained. Moreover, compared to regular second-hand stores, the prices here are lower. With patience, it’s easy to get paid.
The Hong Kong government’s “revitalization” of pawnshops based on their traditional advantages of convenience, freedom, safety, and low interest is focused on the pawnshops’ buildings themselves. The most representative of these is the “Wo Cheong Pawnshop” located on Johnston Road in Wan Chai. This old pawnshop, which once occupied a crucial reclaimed land location, has now become a new landmark in Hong Kong that integrates exhibitions, leisure, and entertainment.
From an optimistic perspective, pawnshops still have room to survive, particularly in providing quick cash, financial inclusivity, and asset value protection. Digital transformation and the diversification of collateral are also likely to shape the future development of this industry.
Bilblography:
Ip, I.C. (2019). ‘The Fall of the Hong Kong Dream: New Paths of Urban Gentrification in Hong Kong’. In Doucette, J. & Park, B.G. (ed.) Developmentalist Cities? Interrogating Urban Developmentalism in East Asia: BRILL. pp. 271-291. https://doi.org/10.1163/9789004383609_013
Michael, T.S. (1994). ‘The Development of Pawnshop Industry in East Asia’. In Bouman, F.J.A. & Hospes, O. (ed.) Financial Landscapes Reconstructed-The Fine Art of Mapping Development: Routledge. pp. 392-410. https://doi.org/10.4324/9780429038891
Mogul, R. (2020, Jul 30). The 200-year history of pawn shops, one of Hong Kong’s oldest businesses. South China Morning Post. https://www.scmp.com/yp/discover/lifestyle/features/article/3095323/200-year-history-pawn-shops-one-hong-kongs-oldest
The Chinese General Chamber of Commerce, Hong Kong. (2020, November). Uncovering the Mystery of Centuries-old Pawnshops. https://cgcc.org.hk/en/temp_publication.php?cid=5&sid=76&tid=0&tabid=0&id=124&cpid=219
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