Hong Kong Special Administrative Region of the People's Republic of China
Location of Hong Kong
|Regional language||Cantonese [a]|
Ethnic groups |
2.6% Other 
|Government||Devolved executive-led system within a socialist republic|
|36 deputies (of 2,924)|
|203 delegates |
|Special administrative region within the People's Republic of China|
|26 January 1841|
|29 August 1842|
|18 October 1860|
|9 June 1898|
|25 December 1941|
to 30 August 1945
1 July 1997
|1,108  km2 (428 sq mi) ( 168th)|
• Water (%)
|3.16 (35 km2; 13.51 sq mi) |
• 2018 estimate
|7,448,900  ( 102nd)|
|6,777 /km2 (17,552.3/sq mi) ( 4th)|
|GDP ( PPP)||2018  estimate|
|$484 billion ( 44th)|
• Per capita
|$64,794 ( 10th)|
|GDP (nominal)||2018  estimate|
|$360 billion ( 35th)|
• Per capita
|$48,231 ( 16th)|
|Gini (2016)|| 53.9
|HDI (2017)|| 0.933
very high · 7th
|Currency||Hong Kong dollar (HK$) ( HKD)|
|Time zone||UTC+8 ( Hong Kong Time)|
|ISO 3166 code||HK|
Hong Kong ( Chinese: 香港; pronunciation in Hong Kong Cantonese: [hœ́ːŋ.kɔ̌ːŋ] ( listen)), officially the Hong Kong Special Administrative Region of the People's Republic of China, is a special administrative region on the eastern side of the Pearl River estuary in southern China. With over 7.4 million people of various nationalities [c] in a 1,104-square-kilometre (426 sq mi) territory, Hong Kong is the world's fourth-most-densely-populated region.
Hong Kong became a colony of the British Empire after Qing China ceded Hong Kong Island at the end of the First Opium War in 1842.  The colony expanded to the Kowloon Peninsula in 1860 after the Second Opium War, and was further extended when Britain obtained a 99-year lease of the New Territories in 1898.   The territory was returned to China when the lease expired in 1997.  As a special administrative region, Hong Kong's system of government is separate from that of mainland China. 
Originally a sparsely populated area of farming and fishing villages,  the territory has become one of the world's most significant financial centres and commercial ports.  It is the world's seventh-largest trading entity,   and its legal tender (the Hong Kong dollar) is the world's 13th-most-traded currency.  Although the city has one of the highest per capita incomes in the world, it has severe income inequality. 
The territory has the largest number of skyscrapers in the world, most surrounding Victoria Harbour.  Hong Kong ranks seventh on the UN Human Development Index, and has the longest life expectancy in the world.   Although over 90 per cent of its population uses public transportation,  air pollution from neighbouring industrial areas of mainland China has resulted in a high level of atmospheric particulates. 
- 1 Etymology
- 2 History
- 3 Government and politics
- 4 Geography
- 5 Demographics
- 6 Economy
- 7 Infrastructure
- 8 Culture
- 9 Education
- 10 Media
- 11 See also
- 12 Notes and references
- 13 External links
"Hong Kong" in Chinese characters
|Literal meaning||Fragrant Harbour,|
Incense Harbour  
|Hong Kong Special Administrative Region|
The name of the territory, first spelled "He-Ong-Kong" in 1780,  originally referred to a small inlet between Aberdeen Island and the southern coast of Hong Kong Island. Aberdeen was an initial point of contact between British sailors and local fishermen.  Although the source of the romanised name is unknown, it is generally believed to be an early phonetic rendering of the Cantonese pronunciation hēung góng. The name translates as "fragrant harbour" or "incense harbour".    "Fragrant" may refer to the sweet taste of the harbour's freshwater influx from the Pearl River or to the odor from incense factories lining the coast of northern Kowloon. The incense was stored near Aberdeen Harbour for export before Victoria Harbour developed.  Sir John Davis (the second colonial governor) offered an alternative origin; Davis said that the name derived from "Hoong-keang" ("red torrent"), reflecting the colour of soil over which a waterfall on the island flowed. 
The simplified name Hong Kong was frequently used by 1810,  also written as a single word. Hongkong was common until 1926, when the government officially adopted the two-word name.  Some corporations founded during the early colonial era still keep this name, including Hongkong Land, Hongkong Electric, Hongkong and Shanghai Hotels and the Hongkong and Shanghai Banking Corporation.  
The region is first known to have been occupied by humans during the Neolithic period, about 6,000 years ago.  Early Hong Kong settlers were a semi-coastal people  who migrated from inland and brought knowledge of rice cultivation.  The Qin dynasty incorporated the Hong Kong area into China for the first time in 214 BCE, after conquering the indigenous Baiyue.  The region was consolidated under the Nanyue kingdom (a predecessor state of Vietnam) after the Qin collapse,  and recaptured by China after the Han conquest.  During the Mongol conquest, the Southern Song court was briefly located in modern-day Kowloon City (the Sung Wong Toi site) before its final defeat in the 1279 Battle of Yamen.  By the end of the Yuan dynasty, seven large families had settled in the region and owned most of the land. Settlers from nearby provinces migrated to Kowloon throughout the Ming dynasty.  The earliest European visitor was Portuguese explorer Jorge Álvares, who arrived in 1513.   Portuguese merchants established a trading post called ( Tamão) in Hong Kong waters, and began regular trade with southern China. Although the traders were expelled after military clashes in the 1520s,  Portuguese-Chinese trade relations were reestablished by 1549. Portugal acquired a permanent lease for Macau in 1557. 
After the Qing conquest, maritime trade was banned under the Haijin policies. The Kangxi Emperor lifted the prohibition, allowing foreigners to enter Chinese ports in 1684.  Qing authorities established the Canton System in 1757 to regulate trade more strictly, restricting non-Russian ships to the port of Canton.  Although European demand for Chinese commodities like tea, silk, and porcelain was high, Chinese interest in European manufactured goods was insignificant. To counter the trade imbalance, the British sold large amounts of Indian opium to China. Faced with a drug crisis, Qing officials pursued ever-more-aggressive actions to halt the opium trade.  The Daoguang Emperor rejected proposals to legalise and tax opium, ordering imperial commissioner Lin Zexu to eradicate the opium trade in 1839. The commissioner destroyed opium stockpiles and halted all foreign trade,  forcing a British military response and triggering the First Opium War. The Qing surrendered early in the war and ceded Hong Kong Island in the Convention of Chuenpi. However, both countries were dissatisfied and did not ratify the agreement.  After over a year of further hostilities, Hong Kong Island was formally ceded to the United Kingdom in the 29 August 1842 Treaty of Nanking. 
Administrative infrastructure was quickly built up by early 1842, but piracy, disease, and hostile Qing policies towards Hong Kong prevented the government from attracting merchants. The Taiping Rebellion, when many wealthy Chinese fled mainland turbulence and settled in the colony, improved conditions on the island.  Further tensions between the British and Qing over the opium trade escalated into the Second Opium War. The defeated Qing were again forced to give up land, ceding Kowloon Peninsula and Stonecutter's Island in the Convention of Peking.  By the end of this war, Hong Kong had evolved from a transient colonial outpost into a major entrepôt. Rapid economic improvement during the 1850s attracted foreign investment, as potential stakeholders became more confident in Hong Kong's future. 
The colony was further expanded in 1898, when Britain obtained a 99-year lease of the New Territories.  The University of Hong Kong was established in 1911 as the territory's first higher-education institute.  Kai Tak Airport began operation in 1924, and the colony avoided a prolonged economic downturn after the 1925–26 Canton–Hong Kong strike.   At the start of the Second Sino-Japanese War in 1937, Governor Geoffry Northcote declared Hong Kong a neutral zone to safeguard its status as a free port.  The colonial government prepared for a possible attack, evacuating all British women and children in 1940.  The Imperial Japanese Army attacked Hong Kong on 8 December 1941, the same morning as its attack on Pearl Harbor.  Hong Kong was occupied by Japan for almost four years before Britain resumed control on 30 August 1945. 
Its population rebounded quickly after the war as skilled Chinese migrants fled from the Chinese Civil War, and more refugees crossed the border when the Communist Party took control of mainland China in 1949.  Hong Kong became the first of the Four Asian Tiger economies to industrialise during the 1950s.  With a rapidly increasing population, the colonial government began reforms to improve infrastructure and public services. The public-housing estate programme, the Independent Commission Against Corruption (ICAC), and Mass Transit Railway were established during the post-war decades to provide safer housing, integrity in the civil service, and more-reliable transportation.   Although the territory's competitiveness in manufacturing gradually declined due to rising labour and property costs, it transitioned to a service-based economy. By the early 1990s, Hong Kong had established itself as a global financial centre and shipping hub. 
The colony faced an uncertain future as the end of the New Territories lease approached, and Governor Murray MacLehose raised the question of Hong Kong's status with Deng Xiaoping in 1979.  Diplomatic negotiations with China resulted in the 1984 Sino-British Joint Declaration, in which the United Kingdom agreed to transfer the colony in 1997 and China would guarantee Hong Kong's economic and political systems for 50 years after the transfer.  The impending transfer triggered a wave of mass emigration as residents feared an erosion of civil rights, the rule of law, and quality of life.  Over half a million people left the territory during the peak migration period, from 1987 to 1996.  Hong Kong was transferred to China on 1 July 1997, after 156 years of British rule. 
Immediately after the transfer, Hong Kong was severely affected by several crises. The government was forced to use substantial foreign-exchange reserves to maintain the Hong Kong dollar's currency peg during the 1997 Asian financial crisis,  and the recovery from this was muted by an H5N1 avian-flu outbreak  and a housing surplus.  This was followed by the 2003 SARS epidemic, during which the territory experienced its most-serious economic downturn. 
Political debates after the transfer of sovereignty have centred around the region's democratic development and the central government's adherence to the " one country, two systems" principle. After reversal of the last colonial-era Legislative Council democratic reforms following the handover,  the regional government unsuccessfully attempted to enact national-security legislation pursuant to Article 23 of the Basic Law.  The central-government decision to implement nominee pre-screening before allowing Chief Executive elections triggered a series of protests in 2014 which became known as the Umbrella Revolution.  Discrepancies in the electoral registry and disqualification of elected legislators after the 2016 Legislative Council elections    and enforcement of national law in the West Kowloon high-speed railway station have raised concerns about the region's autonomy. 
Government and politics
Hong Kong is a special administrative region of China, with executive, legislative, and judicial powers devolved from the national government.  The Sino-British Joint Declaration provided for economic and administrative continuity through the transfer of sovereignty,  resulting in an executive-led governing system largely inherited from the territory's history as a British colony.  Under these terms and the " one country, two systems" principle, the Basic Law of Hong Kong is the regional constitution. 
The regional government is composed of three branches:
- Executive: The Chief Executive is responsible for enforcing regional law,  can force reconsideration of legislation,  and appoints Executive Council members and principal officials.  Acting with the Executive Council, the Chief Executive-in-Council can propose new bills, issue subordinate legislation, and has authority to dissolve the legislature. 
- Legislature: The unicameral Legislative Council enacts regional law, approves budgets, and has the power to impeach a sitting Chief Executive. 
- Judiciary: The Court of Final Appeal and lower courts, whose judges are appointed by the Chief Executive on the advice of a recommendation commission,  interpret laws and overturn those inconsistent with the Basic Law. 
The Chief Executive is the head of government, and serves for a maximum of two five-year terms. The State Council (led by the Premier of China) appoints the Chief Executive after nomination by the Election Committee, which is composed of 1,200 business, community, and government leaders.   
The Legislative Council has 70 members, each serving a four-year term:  35 directly elected from geographical constituencies and 35 representing functional constituencies (FC). Thirty FC councilors are selected from limited electorates representing sectors of the economy or special-interest groups,  and the remaining five members are nominated from sitting District Council members and selected in region-wide double direct elections.  All popularly elected members are chosen with proportional representation. The 30 limited electorate functional constituencies fill their seats using first-past-the-post, or instant-runoff, voting. 
Twenty-two political parties had representatives elected to the Legislative Council in the 2016 election.  These parties have aligned themselves into three ideological groups: the pro-Beijing camp (the current government), the pro-democracy camp, and localist groups.  The Communist Party does not have an official political presence in Hong Kong, and its members do not run in local elections.  Hong Kong is represented in the National People's Congress by 36 deputies chosen through an electoral college, and 203 delegates in the Chinese People's Political Consultative Conference appointed by the central government. 
Chinese national law does not generally apply in the region, and Hong Kong is treated as a separate jurisdiction.  Its judicial system is based on common law, continuing the legal tradition established during British rule.  Local courts may refer to precedents set in English law and overseas jurisprudence.  Interpretative and amending power over the Basic Law and jurisdiction over acts of state lie with the central authority, however, making regional courts ultimately subordinate to the mainland's socialist civil-law system.  Decisions made by the Standing Committee of the National People's Congress can also override territorial judicial processes. 
The territory's jurisdictional independence is most apparent in its immigration and taxation policies. The Immigration Department issues passports for permanent residents which differ from those of the mainland or Macau,  and the region maintains a regulated border with the rest of the country. All travellers between Hong Kong and China and Macau must pass border controls, regardless of nationality.  Chinese citizens resident in mainland China do not have the right of abode in Hong Kong, and are subject to immigration controls.  Public finances are handled separately from the national government, and taxes levied in Hong Kong do not fund the central authority.  
The Hong Kong Garrison is responsible for the region's defence.  Although the Chairman of the Central Military Commission is supreme commander of the armed forces,  the regional government may request assistance from the garrison.  Hong Kong residents are not required to perform military service and current law also no provision for local enlistment, so its defence is composed entirely of non-Hongkongers. 
The central government and the Ministry of Foreign Affairs handle diplomatic matters, but Hong Kong retains the ability to maintain separate economic and cultural relations with foreign nations.  The territory actively participates in the World Trade Organization, the Asia-Pacific Economic Cooperation forum, the International Olympic Committee, and many United Nations agencies.    The regional government maintains trade offices in Greater China and other nations. 
The territory is divided into 18 districts. A 479-seat District Council, 452 of which are directly elected, represents each district and advises the government on local issues such as public-facility provisioning, community-programme maintenance, cultural promotion, and environmental policy.  Rural committee chairmen, representing outlying villages and towns, fill the 27 non-elected seats. 
Political reforms and sociopolitical issues
According to Basic Law Articles 45 and 68, the goal is universal suffrage for the election of the Chief Executive and all members of the Legislative Council.  Although the legislature is partially elected, the executive is not.  The government has been petitioned to introduce direct election of the Chief Executive and all Legislative Council members.  These efforts have been partially successful; the Election Committee no longer selects a portion of the Legislative Council. 
Ethnic minorities (except those of European ancestry) have marginal representation in government, and often experience discrimination in housing, education, and employment.   Employment vacancies and public-service appointments frequently have language requirements which minority job seekers do not meet, and language-education resources remain inadequate for Chinese learners.   Foreign domestic helpers, predominantly women from the Philippines and Indonesia, have little protection under territorial law. Although they live and work in Hong Kong, these workers are not treated as ordinary residents and are ineligible for the right of abode. 
The Joint Declaration guarantees the Basic Law for 50 years after the transfer of sovereignty.  It does not specify how Hong Kong will be governed after 2047, and the central government's role in determining the territory's future system of government is the subject of political debate and speculation. Hong Kong's political and judicial systems may be reintegrated with China's at that time, or the territory may continue to be administered separately.  
Hong Kong is on China's southern coast, 60 km (37 mi) east of Macau, on the east side of the mouth of the Pearl River estuary. It is surrounded by the South China Sea on all sides except the north, which neighbours the Guangdong city of Shenzhen along the Sham Chun River. The territory's 2,755 km2 (1,064 sq mi) area consists of Hong Kong Island, the Kowloon Peninsula, the New Territories, Lantau Island, and over 200 other islands. Of the total area, 1,073 km2 (414 sq mi) is land and 35 km2 (14 sq mi) is water.  The territory's highest point is Tai Mo Shan, 957 metres (3,140 ft) above sea level.  Urban development is concentrated on the Kowloon Peninsula, Hong Kong Island, and in new towns throughout the New Territories.  Much of this is built on reclaimed land, due to the lack of developable flat land; 70 km2 (27 sq mi) (six percent of the total land or about 25 per cent of developed space in the territory) is reclaimed from the sea. 
Undeveloped terrain is hilly to mountainous, with very little flat land, and consists mostly of grassland, woodland, shrubland, or farmland.   About 40 percent of the remaining land area are country parks and nature reserves.  The territory has a diverse ecosystem; over 3,000 species of vascular plants occur in the region (300 of which are native to Hong Kong), and thousands of insect, avian, and marine species.  
Hong Kong has a humid subtropical climate ( Köppen Cwa), characteristic of southern China. Summer is hot and humid, with occasional showers and thunderstorms and warm air from the southwest. Typhoons occur most often then, sometimes resulting in floods or landslides. Winters are mild and usually sunny at the beginning, becoming cloudy towards February; an occasional cold front brings strong, cooling winds from the north. The most temperate seasons are spring (which can be changeable) and autumn, which is generally sunny and dry.  Snowfall is extremely rare, and usually occurs at high elevations. Hong Kong averages 1,709 hours of sunshine per year;  the highest and lowest recorded temperatures at the Hong Kong Observatory are 36.6 °C (97.9 °F) on 22 August 2017 and 0.0 °C (32.0 °F) on 18 January 1893.  The highest and lowest recorded temperatures in all of Hong Kong are 39.0 °C (102 °F) at Wetland Park on 22 August 2017,  and −6.0 °C (21.2 °F) at Tai Mo Shan on 24 January 2016.
|Climate data for Hong Kong ( Hong Kong Observatory), normals 1981–2010, extremes 1884–1939 and 1947–present|
|Record high °C (°F)||26.9
|Mean maximum °C (°F)||23.7
|Average high °C (°F)||18.6
|Daily mean °C (°F)||16.3
|Average low °C (°F)||14.5
|Mean minimum °C (°F)||9.1
|Record low °C (°F)||0.0
|Average rainfall mm (inches)||24.7
|Average rainy days (≥ 0.1 mm)||5.37||9.07||10.90||12.00||14.67||19.07||17.60||16.93||14.67||7.43||5.47||4.47||137.65|
|Average relative humidity (%)||74||80||82||83||83||82||81||81||78||73||71||69||78.0|
|Mean monthly sunshine hours||143.0||94.2||90.8||101.7||140.4||146.1||212.0||188.9||172.3||193.9||180.1||172.2||1,835.6|
|Percent possible sunshine||42||29||24||27||34||36||51||47||47||54||54||51||42|
|Source: Hong Kong Observatory  |
Hong Kong has the world's largest number of skyscrapers, with 317 towers taller than 150 metres (490 ft),  and the third-largest number of high-rise buildings in the world.  The lack of available space restricted development to high-density residential tenements and commercial complexes packed closely together on buildable land.  Single-family detached homes are extremely rare, and generally only found in outlying areas. 
The International Commerce Centre and Two International Finance Centre are the tallest buildings in Hong Kong and among the tallest in the Asia-Pacific region.  Other distinctive buildings lining the Hong Kong Island skyline include the HSBC Main Building, the anemometer-topped triangular Central Plaza, the circular Hopewell Centre, and the sharp-edged Bank of China Tower.  
Demand for new construction has contributed to frequent demolition of older buildings, freeing space for modern high-rises.  However, many examples of European and Lingnan architecture are still found throughout the territory. Older government buildings are examples of colonial architecture. The 1846 Flagstaff House, the former residence of the commanding British military officer, is the oldest Western-style building in Hong Kong.  Some (including the Court of Final Appeal Building and the Hong Kong Observatory) retain their original function, and others have been adapted and reused; the Former Marine Police Headquarters was redeveloped into a commercial and retail complex,  and Béthanie (built in 1875 as a sanatorium) houses the Hong Kong Academy for Performing Arts.  The Tin Hau Temple, dedicated to the sea goddess Mazu (originally built in 1012 and rebuilt in 1266), is the territory's oldest existing structure.  The Ping Shan Heritage Trail has architectural examples of several imperial Chinese dynasties, including the Tsui Sing Lau Pagoda (Hong Kong's only remaining pagoda). 
Tong lau, mixed-use tenement buildings constructed during the colonial era, blended southern Chinese architectural styles with European influences. These were especially prolific during the immediate post-war period, when many were rapidly built to house large numbers of Chinese migrants.  Examples include Lui Seng Chun, the Blue House in Wan Chai, and the Shanghai Street shophouses in Mong Kok. Mass-produced public-housing estates, built since the 1960s, are mainly constructed in modernist style. 
The Census and Statistics Department estimated Hong Kong's population at 7,448,900 in mid-2018.  The overwhelming majority (92 percent) is Han Chinese,  most of whom are Taishanese, Teochew, Hakka, and a number of other Cantonese peoples.    The remaining eight percent are non-ethnic-Chinese minorities, primarily Filipinos, Indonesians, and South Asians.   About half the population have some form of British nationality, a legacy of colonial rule; 3.4 million residents have British National (Overseas) status, and 260,000 British citizens live in the territory.  The vast majority also hold Chinese nationality, automatically granted to all Chinese residents at the transfer of sovereignty. 
The predominant language is Cantonese, a variety of Chinese originating in Guangdong. It is spoken by 94.6 percent of the population, 88.9 percent as a first language and 5.7 percent as a second language.  Slightly over half the population (53.2 percent) speaks English, the other official language;  4.3 percent are native speakers, and 48.9 percent speak English as a second language.  Code-switching, mixing English and Cantonese in informal conversation, is common among the bilingual population.  Post-handover governments have promoted Mandarin, which is currently about as prevalent as English; 48.6 percent of the population speaks Mandarin, with 1.9 percent native speakers and 46.7 percent speaking it as a second language.  Traditional Chinese characters are used in writing, rather than the simplified characters used on the mainland. 
Among the religious population, the traditional " three teachings" of China ( Buddhism, Confucianism, and Taoism) have the most adherents (20 percent) and are followed by Christianity (12 percent) and Islam (four percent).  Followers of other religions, including Sikhism, Hinduism, Judaism, and the Bahá'í Faith, generally originate from regions where their religion predominates. 
Of residents aged 15 and older, 81.3 percent completed lower-secondary education; 66.4 percent graduated from an upper secondary school, 31.6 percent attended a non-degree tertiary program, and 24 percent earned a bachelor's degree or higher.  Mandatory education has contributed to an adult literacy rate of 95.7 percent.  Lower than that of other developed economies, the rate is due to the influx of refugees from mainland China during the post-war colonial era. Much of the elderly population were not formally educated due to war and poverty.  
Life expectancy in Hong Kong was 81.7 years for males and 87.7 years for females in 2017, the world's seventh-highest.   Cancer, pneumonia, heart disease, cerebrovascular disease, and accidents are the territory's five leading causes of death.  The universal public system is funded by general-tax revenue, and treatment is highly subsidised; on average, 95 percent of healthcare costs are covered by the government. 
Income inequality has risen since the transfer of sovereignty, as the region's ageing population has gradually added to the number of nonworking people.  Although median household income has steadily increased during the past decade, the wage gap remains high;  the 90th percentile of earners receive 41 percent of all income.  The city has the most billionaires per capita, with one billionaire per 109,657 people.  Despite government efforts to reduce the growing disparity,  median income for the top 10 percent of earners is 44 times that of the bottom 10 percent.  
Hong Kong has a capitalist mixed service economy, characterised by low taxation, minimal government market intervention, and an established international financial market.  It is the world's 35th-largest economy, with a nominal GDP of approximately US$364 billion.  Although Hong Kong's economy has ranked at the top of the Heritage Foundation's economic freedom index since 1995,   the territory has a relatively high level of income disparity.  The Hong Kong Stock Exchange is the seventh-largest in the world, with a market capitalisation of US$4.3 trillion as of December 2017 [update]. 
Hong Kong is the seventh-largest trading entity in exports and imports, trading more goods in value than its gross domestic product.   Over half of its cargo throughput consists of transshipments (goods travelling through Hong Kong). Products from mainland China account for about 40 percent of that traffic.  The city's location allowed it to establish a transportation and logistics infrastructure which includes the world's fifth-busiest container port  and the busiest airport for international cargo.  The territory's largest export markets are mainland China and the United States. 
It has little arable land and few natural resources, importing most of its food and raw materials. Imports account for more than 90 percent of Hong Kong's food supply, including nearly all its meat and rice.  Agricultural activity is 0.1% of GDP, and consists of growing premium food and flower varieties. 
Although the territory had one of Asia's largest manufacturing economies during the latter half of the colonial era, Hong Kong's economy is now dominated by the service sector. The sector is 92.7 percent of economic output, with the public sector accounting for about 10 percent.  Between 1961 and 1997, Hong Kong's gross domestic product multiplied by a factor of 180 and while per-capita GDP increased by a factor of 87.   The territory's GDP relative to mainland China's peaked at 27 percent in 1993; it fell to less than three percent in 2017, as the mainland developed and liberalised its economy. 
Economic and infrastructure integration with China has increased significantly since the 1978 start of market liberalisation on the mainland. Since resumption of cross-boundary train service in 1979, many rail and road links have been improved and constructed (facilitating trade between regions).   The Closer Partnership Economic Arrangement formalised a policy of free trade between the two areas, with each jurisdiction pledging to remove remaining obstacles to trade and cross-boundary investment.  A similar economic partnership with Macau details the liberalisation of trade between the special administrative regions.  Chinese companies have expanded their economic presence in the territory since the transfer of sovereignty. Mainland firms represent over half of the Hang Seng Index value, up from five percent in 1997.  
As the mainland liberalised its economy, Hong Kong's shipping industry faced intense competition from other Chinese ports. Fifty percent of China's trade goods were routed through Hong Kong in 1997, dropping to about 13 percent by 2015.  The territory's minimal taxation, common-law system, and civil service attract overseas corporations wishing to establish a presence in Asia.  The city has the second-highest number of corporate headquarters in the Asia-Pacific region.  Hong Kong is a gateway for foreign direct investment in China, giving investors open access to mainland Chinese markets through direct links with the Shanghai and Shenzhen stock exchanges. The territory was the first market outside mainland China for renminbi-denominated bonds, and is one of the largest hubs for offshore renminbi trading. 
The government has had a passive role in the economy. Colonial governments had little industrial policy, and implemented almost no trade controls. Under the doctrine of " positive non-interventionism", post-war administrations deliberately avoided the direct allocation of resources; active intervention was considered detrimental to economic growth.  While the economy transitioned to a service basis during the 1980s,  late colonial governments introduced interventionist policies. Post-handover administrations continued and expanded these programmes, including export-credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer. 
Tourism is a major part of the economy, accounting for five percent of GDP.  In 2016, 26.6 million visitors contributed US$32.9 billion to the territory, making Hong Kong the 14th- most-popular destination for international tourists. It is the most popular city for tourists, receiving over 70 percent more visitors than its closest competitor (Macau).  The city is ranked as one of the most expensive cities for expatriates.  
Hong Kong has a highly developed, sophisticated transport network. Over 90 percent of daily trips are made on public transport, the highest percentage in the world.  The Octopus card, a contactless smart payment card, is widely accepted on railways, buses and ferries, and can be used for payment in most retail stores. 
The Mass Transit Railway (MTR) is an extensive passenger rail network, connecting 93 metro stations throughout the territory.  With a daily ridership of over five million, the system serves 41 percent of all public-transit passengers in the city  and has an on-time rate of 99.9 percent.  Cross-boundary train service to Shenzhen is offered by the East Rail line, and longer-distance inter-city trains to Guangzhou, Shanghai, and Beijing are operated from Hung Hom Station.  Connecting service to the national high-speed rail system is provided at West Kowloon Station. 
Although public-transport systems handle most passenger traffic, there are over 500,000 private vehicles registered in Hong Kong.  Automobiles drive on the left (unlike in mainland China), due to historical influence of the British Empire.  Vehicle traffic is extremely congested in urban areas, exacerbated by limited space to expand roads and an increasing number of vehicles.  More than 18,000 taxicabs, easily identifiable by their bright colour, are licensed to carry riders in the territory.  Bus services operate more than 700 routes across the territory,  with smaller public light buses (also known as minibuses) serving areas standard buses do not reach as frequently or directly.  Highways, organised with the Hong Kong Strategic Route and Exit Number System, connect all major areas of the territory.  The Hong Kong–Zhuhai–Macao Bridge creates a direct route to the western side of the Pearl River estuary. 
Hong Kong International Airport is the territory's primary airport. Over 100 airlines operate flights from the airport, including locally based Cathay Pacific ( flag carrier), Hong Kong Airlines, regional carrier Cathay Dragon, and cargo airline Air Hong Kong.  It is the eighth-busiest airport by passenger traffic,  and handles the most air-cargo traffic in the world.  Most private recreational aviation traffic flies through Shek Kong Airfield, under the supervision of the Hong Kong Aviation Club. 
The Star Ferry operates two lines across Victoria Harbour for its 53,000 daily passengers.  Ferries also serve outlying islands inaccessible by other means. Smaller kai-to boats serve the most remote coastal settlements.  Ferry travel to Macau and mainland China is also available.  Junks, once common in Hong Kong waters, are no longer widely available and are used privately and for tourism. 
The Peak Tram, Hong Kong's first public-transport system, has provided funicular rail transport between Central and Victoria Peak since 1888.  The Central and Western District has an extensive system of escalators and moving pavements, including the Mid-Levels escalator (the world's longest outdoor covered escalator system).  Hong Kong Tramways covers a portion of Hong Kong Island. The MTR operates its Light Rail system, serving the northwestern New Territories. 
Hong Kong imports nearly all its generated electricity and fuel.  The vast majority of this energy comes from fossil fuels, with 46 percent from coal and 47 percent from petroleum.  The rest is from other imports, including nuclear energy generated on the mainland.  Renewable sources account for a negligible amount of energy generated for the territory.  Small-scale wind-power sources have been developed,  and a small number of private homes have installed solar panels. 
With few natural lakes and rivers, high population density, inaccessible groundwater sources, and extremely seasonal rainfall, the territory does not have a reliable source of fresh water. The Dongjiang River in Guangdong supplies 70 percent of the city's water,  and the remaining demand is filled by harvesting rainwater.  Toilets flush with seawater, greatly reducing freshwater use. 
Broadband Internet access is widely available, with 92.6 percent of households connected. Connections over fibre-optic infrastructure are increasingly prevalent,  contributing to the high regional average connection speed of 21.9 Mbit/s (the world's fourth-fastest).  Mobile-phone use is ubiquitous;  there are more than 18 million mobile-phone accounts,  more than double the territory's population. 
Hong Kong is characterised as a hybrid of East and West. Traditional Chinese values emphasising family and education blend with progressive Western ideals, including economic liberty and the rule of law.  Although the vast majority of the population is ethnically Chinese, Hong Kong has developed a distinct identity. The territory diverged from the mainland due to its long period of colonial administration and a different pace of economic, social, and cultural development. Mainstream culture is derived from immigrants originating from various parts of China. This was influenced by British-style education, a separate political system, and the territory's rapid development during the late 20th century.   Most incoming migrants fled poverty and war, reflected in the prevailing attitude toward wealth; Hongkongers tend to link self-image and decision-making to material benefits.  
Traditional Chinese family values, including family honor, filial piety, and a preference for sons, are prevalent.  Nuclear families are the most common households, although multi-generational and extended families are not unusual.  Spiritual concepts such as feng shui are observed; large-scale construction projects often hire consultants to ensure proper building positioning and layout. The degree of its adherence to feng shui is believed to determine the success of a business.  Bagua mirrors are regularly used to deflect evil spirits,  and buildings often lack floor numbers with a 4;  the number has a similar sound to the word for "die" in Cantonese. 
Food in Hong Kong is based on Cantonese cuisine, despite the territory's exposure to foreign influences and its residents' varied origins. Rice is the staple food, and is usually served plain with other dishes.  Freshness of ingredients is emphasised. Poultry and seafood are commonly sold live at wet markets, and ingredients are used as quickly as possible.  There are five daily meals: breakfast, lunch, afternoon tea, dinner, and siu yeh.  Dim sum, as part of yum cha (brunch), is a dining-out tradition with family and friends. Dishes include congee, cha siu bao, siu yuk, egg tarts, and mango pudding. Local versions of Western food are served at cha chaan teng (fast, casual restaurants). Common cha chaan teng menu items include macaroni in soup, deep-fried French toast, and Hong Kong-style milk tea. 
Hong Kong developed into a filmmaking hub during the late 1940s as a wave of Shanghai filmmakers migrated to the territory, and these movie veterans helped rebuild the colony's entertainment industry over the next decade.  By the 1960s, the city was well known to overseas audiences through films such as The World of Suzie Wong.  When Bruce Lee's Way of the Dragon was released in 1972, local productions became popular outside Hong Kong. During the 1980s, films such as A Better Tomorrow, As Tears Go By, and Zu Warriors from the Magic Mountain expanded global interest beyond martial arts films; locally made gangster films, romantic dramas, and supernatural fantasies became popular.  Hong Kong cinema continued to be internationally successful over the following decade with critically acclaimed dramas such as Farewell My Concubine, To Live, and Chungking Express. However, the city's martial-arts-film roots are evident in the roles of the most prolific Hong Kong actors. Jackie Chan, Donnie Yen, Jet Li, Chow Yun-fat, and Michelle Yeoh frequently play action-oriented roles in foreign films. At the height of the local movie industry in the early 1990s, over 400 films were produced each year; since then, industry momentum shifted to mainland China. The annual number of films produced has declined, to about 60 in 2017. 
Cantopop is a genre of Cantonese popular music which emerged in Hong Kong during the 1970s. Evolving from Shanghai-style shidaiqu, it is also influenced by Cantonese opera and Western pop.  Local media featured songs by artists such as Anita Mui, Leslie Cheung, and Alan Tam; during the 1980s, exported films and shows exposed Cantopop to a global audience.  The genre's popularity peaked in the 1990s, when the Four Heavenly Kings dominated Asian record charts.  Despite a general decline since late in the decade,  Cantopop remains dominant in Hong Kong; contemporary artists such as Eason Chan, Joey Yung, and Twins are popular in and beyond the territory. 
Western classical music has historically had a strong presence in Hong Kong, and remains a large part of local musical education.  The publicly funded Hong Kong Philharmonic Orchestra, the territory's oldest professional symphony orchestra, frequently host musicians and conductors from overseas. The Hong Kong Chinese Orchestra, composed of classical Chinese instruments, is the leading Chinese ensemble and plays a significant role in promoting traditional music in the community. 
Sport and recreation
Despite its small area, the territory is home to a variety of sports and recreational facilities. The city has hosted a number of major sporting events, including the 2009 East Asian Games, the 2008 Summer Olympics equestrian events, and the 2007 Premier League Asia Trophy.  The territory regularly hosts the Hong Kong Sevens, Hong Kong Marathon, Hong Kong Tennis Classic and Lunar New Year Cup, and hosted the inaugural AFC Asian Cup and the 1995 Dynasty Cup.  
Hong Kong represents itself separately from mainland China, with its own sports teams in international competitions.  The territory has participated in almost every Summer Olympics since 1952, and has earned three medals. Lee Lai-shan won the territory's first and only Olympic gold medal at the 1996 Atlanta Olympics.  Hong Kong athletes have won 126 medals at the Paralympic Games and 17 at the Commonwealth Games. No longer part of the Commonwealth of Nations, the city's last appearance in the latter was in 1994. 
Dragon boat races originated as a religious ceremony conducted during the annual Tuen Ng Festival. The race was revived as a modern sport as part of the Tourism Board's efforts to promote Hong Kong's image abroad. The first modern competition was organised in 1976, and overseas teams began competing in the first international race in 1993. 
The Hong Kong Jockey Club, the territory's largest taxpayer,  has a monopoly on gambling and provides over seven percent of government revenue.  Three forms of gambling are legal in Hong Kong: lotteries and betting on horse racing and football. 
Education in Hong Kong is largely modelled after that of the United Kingdom, particularly the English system.  Children are required to attend school from the age of six until completion of secondary education, generally at age 18.   At the end of secondary schooling, all students take a public examination and awarded the Hong Kong Diploma of Secondary Education on successful completion.  Of residents aged 15 and older, 81.3% completed lower secondary schooling, 66.4% graduated from upper secondary, 31.6% attended a non-degree tertiary program, and 24% earned a bachelor's degree or higher.  Mandatory education has contributed to an adult literacy rate of 95.7%.  While comparatively lower than that of other developed economies, this rate is due to the influx of refugees from mainland China during the post-war colonial era. Much of the elderly population were not formally educated as a result of war and poverty.  
Comprehensive schools fall under three categories: public schools, which are fully government-run; subsidised schools, including government aid-and-grant schools; and private schools, often those run by religious organisations and that base admissions on academic merit. These schools are subject to the curriculum guidelines as provided by the Education Bureau. Private schools subsidised under the Direct Subsidy Scheme and international schools fall outside of this system and may elect to use differing curricula and teach based on other languages. 
The government maintains a policy of "mother tongue instruction"; schools use Cantonese as the medium of instruction, with written education in both Chinese and English. Secondary schools emphasise "bi-literacy and tri-lingualism", which has encouraged the proliferation of spoken Mandarin language education. 
Hong Kong has ten universities within its territory. The University of Hong Kong was founded as the city's first institute of higher education during the early colonial period in 1911.  The Chinese University of Hong Kong was established in 1963 to fill the need for a university that taught using Chinese as its primary language of instruction.  Along with the Hong Kong University of Science and Technology and City University of Hong Kong, these universities are ranked among the best in Asia.  The Hong Kong Polytechnic University,  Hong Kong Baptist University,  Lingnan University,  Education University of Hong Kong,  Open University of Hong Kong,  and Hong Kong Shue Yan University were all established in subsequent years. 
Hong Kong's major English-language newspaper is the South China Morning Post, with The Standard a business-oriented alternative. A variety of Chinese-language newspapers are published daily; the most prominent are Ming Pao, Oriental Daily News, and Apple Daily. Local publications are often politically affiliated, with pro-Beijing or pro-democracy sympathies. The central government has a print-media presence in the territory through the state-owned Ta Kung Pao and Wen Wei Po.  Several international publications have regional operations in Hong Kong, including The Wall Street Journal, The Financial Times, The New York Times International Edition, USA Today, Yomiuri Shimbun, and The Nikkei. 
Three free-to-air television broadcasters operate in the territory; TVB, HKTVE, and Fantastic TV air three analogue and eight digital channels.  TVB, Hong Kong's dominant television network, has an 80-percent viewer share.  Pay TV services operated by Cable TV Hong Kong and PCCW offer hundreds of additional channels and cater to a variety of audiences.  RTHK is the public broadcaster, providing seven radio channels and three television channels.  Ten non-domestic broadcasters air programming for the territory's foreign population.  Access to media and information over the Internet is not subject to mainland-Chinese regulations, including the Great Firewall. 
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- Hong Kong permanent residents can be of any nationality. A person without Chinese nationality who has entered Hong Kong with a valid travel document, has ordinarily resided there for a continuous period not less than seven years, and is permanently domiciled in the territory would be legally recognized as a Hongkongese. 
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Legislation and case law
- Amendment to the Basic Law Annex I ( Instrument A111)
- Basic Law Annex III
- Basic Law Chapter II
- Basic Law Chapter III
- Basic Law Chapter IV
- Basic Law Chapter V
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- Chief Executive of the Hong Kong Special Administrative Region and Another v the President of the Legislative Council, HCAL 185/2016, at para. 20
- Constitution of the People's Republic of China ( Instrument A1)
- District Councils Ordinance ( Cap. 547) Schedule 3
- Hong Kong Special Administrative Region Passports Ordinance ( Cap. 539)
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- Official Languages Ordinance (Cap. 5) § 3(1)
- Sino-British Joint Declaration ( Instrument A301)
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