Scuffles broke out between Hong Kong protesters and police in a town near the boundary with mainland China where thousands rallied against the presence of Chinese traders, seizing on another grievance following major unrest over an extradition bill.

Key points: While Carrie Lam has declared the extradition bill "dead", protesters have vowed to continue

While Carrie Lam has declared the extradition bill "dead", protesters have vowed to continue Local mainlander-owned businesses were targeted as rejection of Beijing's influence

Local mainlander-owned businesses were targeted as rejection of Beijing's influence Protests took place elsewhere in Hong Kong on Saturday, and will continue Sunday

Walking behind a banner that read "strictly enforce the law, stop cross-border traders," the protesters passed by pharmacies and cosmetic shops popular with Chinese tourists and traders who bring goods back to sell in the mainland.

In what has become a common scene, clashes broke out between police and some of the protesters toward the end of the otherwise peaceful march.

Protesters hold up signs that read: "Strict enforcing of law against smugglers of grey goods". ( AP: Kin Cheung )

Demonstrators threw umbrellas and hard hats at officers, who retaliated by swinging batons and firing pepper spray.

"We have no weapons and we were peaceful," said one protester, surnamed Chan, who declined to give his full name.

"When we saw them taking photos of us in the crowd we had to react."

Another protester said scuffles started when demonstrators charged the police after the latter came to the assistance of mainland traders who had assaulted demonstrators.

Protesters argue chief executive Carrie Lam is not listening to their concerns. ( AP: Kin Cheung )

Saturday's march took place in Sheung Shui, a district that lies across the border from the mainland city of Shenzhen.

Organiser Ronald Leung, a leader of the North District Parallel Imports Concern Group, said residents of Sheung Shui have been complaining about the issue of Chinese traders for many years.

"Citizens are really angry," he said.

Anti-extradition protesters are planning another demonstration on Sunday. ( AP: Kin Cheung )

"They want to come out and show their concern over the cross-border traders problem in the area, which is never solved."

The demonstrators chanted demands in Mandarin, China's official language, for the Chinese traders to go home.

Many street-level shops were shuttered during the march.

"Our lovely town has become chaos," said Ryan Lai, 50, a local resident.

Frustration with mainland Chinese influence in Hong Kong is boiling over. ( AP: Kin Cheung )

"The extradition bill was the tipping point for us to come out. We want Sheung Shui back."

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Later in the day Hong Kong police urged protesters to refrain from violence and leave the area.

The protest was the latest in a series that have agitated the former British colony for more than a month, giving rise to its worst political crisis since its 1997 handover to China.

Sometimes violent street protests have drawn in millions of people, with hundreds even storming the legislature on July 1 to oppose a now-suspended extradition bill that would have allowed criminal suspects in Hong Kong to be sent to China to face trial in courts under ruling Communist Party control.

The protests have a common refrain: Hong Kong's government, led by a non-democratically elected chief executive, is not addressing the people's concerns.

Amy Chan, a 25-year-old bank employee who joined Saturday's march, called it a continuing action building on the momentum of the anti-extradition law protests.

"There isn't an anti-extradition protest every day to keep us going," she said.

Scuffles allegedly started after the police came to the assistance of mainland traders who had assaulted demonstrators. ( AP: Kin Cheung )

"I hope that through today's action, people in Hong Kong will not forget that there are actually many other social issues waiting to be solved."

The city's leader, Carrie Lam, has pledged to do a better job of listening to all sectors of society, but many protesters want her to resign.

Ms Lam's government proposed the extradition legislation in February, igniting concerns that the rights and freedoms guaranteed to the former British colony for 50 years after its return to China are being chipped away at by a pro-Beijing government in Hong Kong.

"The government, Carrie Lam, some legislators in functional constituencies are not elected by the people, so there are many escalating actions in different districts to reflect different social issues," said Jimmy Sham of the Civil Human Rights Front, which organised protests against the extradition bill.

"If political problems are not solved, social well-being issues will continue to emerge endlessly."

Ms Lam suspended the legislation indefinitely after protesters blocked the legislature on June 12, preventing the Legislative Council from meeting to debate the extradition bill.

Faced with continuing protests, she declared the bill "dead" on Tuesday, but protesters remain unsatisfied, demanding it be formally withdrawn.

Anti-extradition protesters plan another demonstration on Sunday in the town of Sha Tin, in the so-called New Territories between Hong Kong island and the border with China.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 7 minutes 27 seconds 7 m Hong Kong pro-democracy activist says Carrie Lam 'toeing the Beijing line' ( Manny Tsigas )

AP/Reuters