According to a knowledgeable friend, Shenzhen’s latest census results indicate that the city’s population has breached 17 million. However, the number of residents with hukou remains between 2 and 3 million. In other words, although the population continues to grow and despite liberalizing hukou regulations, nevertheless, the hukou population has remained relatively static.

What’s going on?

Another at the table said that although the regulations had been liberalized, nevertheless, applications had bottle-necked at different ministries and offices. The common denominator seems to be that its not enough to have fulfilled the requirements, but one must somehow exceed those requirements, offering something that will enhance Shenzhen’s statistical profile.

This rumor echoed similar rumors that I have heard about education. Although Shenzhen schools are required to admit waidi (outside) students in their cachment area, nevertheless, schools often refuse to admit these students unless they are incredibly talented and likely to produce results. Importantly, people emphasize that its not possible simply to buy one’s way into a school because teachers’ salaries and school rankings are at stake — no one wants to waste their time on students who will drag down class and school averages.

The general point seems to be that simply having money isn’t enough to buy one’s way into Shenzhen; one must also add cultural value to get in with the in crowd.