It is interesting how shocked Chinese tourists are at the thought of getting ripped off in Hong Kong.

These days the former British colony, which attracts over a million mainland tourists every month with its unique blend of Chinese and western tastes, is suffering from a tarnished image in China after a report last month on Chinese TV exposed how mainland tourists were duped into buying fake, overpriced watches and jewelry.

Beijing resident Wu Yelan told us she no longer planned to visit Hong Kong after her aunt got stuck paying top dollar for a cheap DVD player and fake watches. One tourist who dared to make the journey here said at Beijing airport she was "psychologically prepared" for her visit but planned to buy nothing.

Yet counterfeit DVDs, watches, jewelry, hand bags - you name it - can be found all over China.

So why the shock?

It is easy to dismiss their reaction as first time travelers' naivete but the implications for Hong Kong are potentially much greater.

Since Hong Kong returned to China 10 years ago, the city has thrived on its ability to abide by a higher standard than the rest of the country. International investors trust its financial markets. Companies believe in its courts.

There had been fears that Hong Kong would be overwhelmed by cheap competition from China in the core businesses that drove its economy. But, in fact, Hong Kong has maintained its edge because of its sterling reputation. Its well-regulated capital markets have been the number one choice for Chinese companies to raise funds. The professional management of Hong Kong firms have allowed them to stay ahead of their rivals. The city's reputation for retailer honesty is one of the reasons so many Chinese tourists choose to come here and shop, boosting the economy.

This is why the travel industry in Hong Kong has reacted so swiftly and strongly to the scam scandal. They are overhauling the compensation schemes for tour guides. They are thinking of extending their 14-day return policy to a whopping six months for mainland group travelers.

During this May "Golden Week" holiday, authorities are hoping to rebuild confidence in the retail sector.

Let's hope their strategy works for the good of Hong Kong.

Watch my report

From Eunice Yoon, CNN International Correspondent and Asia Business Editor

I fear I may have jinxed the launch of Kate Moss's much ballyhooed clothing
line in London. Moss, the supermodel turned fashion designer, agreed to pose
as a mannequin in the window of Topshop in Oxford Street.

The London-based retail chain that paid Moss millions of dollars to create outfits to her liking for the masses, was determined to have Moss appear in a full-length chiffon number from her clothing line in the store's marquee.

Only a pane of glass and a red velvet curtain separated the supermodel from the hundreds of fans who lined up outside the store see her.

"I hope you guys tested the curtain," I whispered to a Topshop maintenance
worker. We were out of earshot of the pack of journalists following Moss to
the backside of the marquee inside the store.

"Don't worry - it has been sorted," he assured, as I pointed out a white
rope seemingly misplaced and hanging from the curtain top.

So you know what happened next. Topshop boss Philip Green leads the New Year's Eve-style countdown to the curtain pull ... and for the big moment - the unveiling of Kate Moss with her collection - the curtain doesn't pull.

A very annoyed Green chomped his gum as various Topshop men and women jumped to the store window to tug at the red velvet curtain ropes. Cussing ensued. An initially frazzled Ms. Moss eventually laughed the gaffe off.

After what may have been the longest three minutes known to a Topshop storefront designer, the curtains were fixed. The red velvet was raised to reveal Ms. Moss to the masses. And then Kate Moss did what she does best ... she worked the cameras.

Albeit only for about 30 seconds before she scampered off the stage. For her cell-phone-totting fans who see the model as a fashion icon who can do no wrong, a half-a-minute was long enough.

From Alphonso Van Marsh, CNN International Correspondent

Ten seconds. That’s all it took to reduce June Taylor to tears as she walked into the underground station where her daughter was blown apart by a suicide bomber. I knew it would be a hard day for her and her husband, John, but the tears flowed so freely, it overwhelmed her and so did the anger.

Twenty-four-year-old Carrie Taylor died on July 7, 2005 as Shehzad Tanweer blew himself up just a few feet from where she stood on the train. The last thing she said to her Mom was "Don’t wait for tonight." But of course they did. Hour after hour they waited and waited for their daughter to call or come home. But it was only a police officer that knocked on their door that night.

By law, June and John Taylor weren't supposed to know that Shehzad Tanweer and an accomplice, Mohammed Siddique Khan were tagged and tailed by police a full 17 months before they detonated their bombs. A judge had forbidden us from reporting the evidence until there was a guilty verdict in the Crevice trial. But police and the media told the Taylors all about the evidence revealed in court at the fertilizer bomb trial. Tanweer and Khan were under surveillance and tracked at least four times. Police say they were dismissed as fraud artists and fundraisers for terrorists, not worthy of a costly round-the-clock surveillance operation.

In response to that, June Taylor looked me in the eyes and said: "They were all negligent, that’s the truth and I want them to stand up and admit it." June and John Taylor say the whole thing sickens them. The thought that their daughter could still be with them if police had taken Tanweer and Khan seriously.

Police and security services have responded by saying given the information they gathered on Tanweer and Khan, no one would have ever assumed they would one day become suicide bombers.

Police today wanted to concentrate instead on the impressive statistics about the terror plot they did manage to stop: The fertilizer bomb plot. They gathered 24,000 thousand hours of video and audio recordings during surveillance, 12,000 separate exhibits and it took as much as $100 million to see this case through.

The Taylors reminded me of their statistics too. It took 24 minutes for help to get to their daughter Carrie, 2 minutes for her to die after that help arrived, and 2 days to get their daughter's mangled body off the platform and finally refrigerated before it could be reclaimed by them for burial.

For the Taylors, it doesn't matter how significant the Crevice convictions are for police, for them it will always be about the ones that got away.

-- From International Security Correspondent Paula Newton.