Parallel traders are those who buy products in the city and sell them at a higher price on the mainland for a profit. They include both mainland Chinese people and Hongkongers.

“Patriots should use China-made products, do not parallel trade!” the crowd chanted.

The march was organised by several district councillors from the Democratic Party and some residents’ groups. Organisers said about 10,000 people showed up, while police put the figure at 2,500 at its peak.

At around 2.40pm, soon after the procession set off, officers said another group of demonstrators hurled petrol bombs at Sheung Shui Police Station – located in Fanling and almost half an hour’s walk from the protest route – which prompted the force to fire tear gas in return. A police vehicle had been blackened, the force said in a Facebook post.

Tensions flared outside Metropolis Plaza in Sheung Shui at around 3.40pm when riot police pointed pepper spray at journalists and the protesters from the march, asking them to leave immediately, and saying that the crowd had diverted from their authorised route. The blue flag was raised several times to warn people they were taking part in an unlawful assembly.

Following repeated warnings, riot police advanced towards protesters outside Sheung Shui Centre mall after 4pm, pepper-spraying and arresting dozens of them.

About 20 plain-clothes and masked officers, alongside scores of riot police, also entered the mall and used pepper spray to disperse crowds gathered there. One man was seen being taken away.

The march was held weeks ahead of Lunar New Year later this month. Organisers said parallel trading was usually more rampant during the festive period.

Democratic Party lawmaker Lam Cheuk-ting, who was among organisers, called the police operation “outrageous”. “Our march was conducted in a peaceful and orderly manner, and it takes time for the protesters to disperse,” he said. 

Lam said protesters had reached the march’s destination point at around 3pm but had approval to hold the rally till 5pm. “I don’t see why police have to rush in and make arrests,” he said. “There were passers-by as well [outside Sheung Shui Centre] ... I believe police may have wrongly arrested those innocent people.”

Two arrested as parallel trading protests descend into chaos

By 5.30pm, officers released some 20 people whom they had earlier intercepted outside Sheung Shui Centre. Others who were arrested were taken away on a coach.

One march-goer, who only gave his surname as Chan and who was stopped by officers, accused police of arresting people indiscriminately. He said protesters had to pass by the shopping centre, located near the march destination, to disperse.

“I do not understand why I was detained. Is it illegal to wear a mask?” he said, adding he wore a face covering but had not even dressed in black – the colour of protesters – or brought along any gas masks.

Chan said officers conducted bag and body searches on them and recorded their personal details before letting them go.

But in a Facebook post, police said some protesters had ignored their repeated requests of dispersal from the shopping centre and committed a breach of the peace at around 4pm by setting up barricades with umbrellas and besieging some passers-by.

The force said it had intercepted some people and arrested others for unlawful assembly at around 4.15pm to prevent the situation from worsening.

By 7pm, a total of 47 people had been arrested, mostly over unlawful assembly, a police source said.

Pharmacies and cosmetics shops targeted as protest takes ugly turn

Kyle, 22, a Sheung Shui resident who took part in the march, said: “We must come out to tell the parallel traders that this is Northern district, not Lo Wu. This is our home.”

The office worker urged the Hong Kong government to limit the number of mainland tourists allowed to visit the city, changing the “one trip per week” policy for Shenzhen residents to “eight trips per year”.

He said many shops in the area had started selling pharmaceutical or cosmetic products to mainland Chinese traders, making it difficult for local residents to buy daily groceries.

“For the past many years, the streets of Sheung Shui have been jam packed with parallel traders,” he said.

Another protester, Luke Shum, said he came from Lantau Island to take part in the demonstration against parallel traders and to keep a months-long anti-government movement in the city going.

Hong Kong has been rocked by nearly seven months of protests, sparked by the now-withdrawn extradition bill. The campaign has since morphed into wider action against authorities.