Occupied by the UK in 1841, Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region (SAR) of the People's Republic of China on 1 July 1997. In this agreement, China promised that, under its "one country, two systems" formula, China's socialist economic system would not be imposed on Hong Kong and that Hong Kong would enjoy a high degree of autonomy in all matters except foreign and defense affairs for the next 50 years.
National Day (Anniversary of the Founding of the People's Republic of China), 1 October (1949); note - 1 July 1997 is celebrated as Hong Kong Special Administrative Region Establishment Day
several previous (governance documents while under British authority); latest drafted April 1988 to February 1989, approved March 1990, promulgated 4 April 1990 (Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China serves as the constitution); note - since 1990, China's National People's Congress has interpreted specific articles of the Basic Law (2013)
18 years of age in direct elections for half the legislature and a majority of seats in 18 district councils; universal for permanent residents living in the territory of Hong Kong for the past seven years; note - in indirect elections, suffrage is limited to about 220,000 members of functional constituencies for the other half of the legislature and an 1,200-member election committee for the chief executive drawn from broad sectoral groupings, central government bodies, municipal organizations, and elected Hong Kong officials
elections:
chief executive elected for five-year term by a 1,200-member election committee; on 25 March 2012 LEUNG Chun-ying [C.Y.LEUNG] was elected chief executive by a 1,193-member election committee; he took office on 1 July 2012; (next to be held in March 2017)
note:the Legislative Council voted in June 2010 to expand the electoral committee to 1,200 seats for the 2012 selection
election results:
LEUNG Chun-ying was selected with 689 votes; Henry TANG received 285 votes, and Albert HO received 76 of the 1,132 votes cast; 82 ballots were deemed invalid; most were blank
unicameral Legislative Council or LegCo (70 seats; 35 members indirectly elected by functional constituencies, 35 elected by popular vote; members serve four-year terms)
note:the LegCo voted in June 2010 to expand to 70 seats for the 2012 election; the measure was approved by the National People's Congress Standing Committee in August 2010
elections:
last held on 9 September 2012 (next to be held in September 2016)
election results:
percent of vote by block - pro-democracy 56%; pro-Beijing 41%, independent 3%; seats by parties - (pro-Beijing 43) DAB 13, BRA 7, FTU 6, Liberal Party 5, others 10; (pro-democracy 27) Democratic Party 6, Civic Party 6, Labor Party 4, People Power 3, Professional Commons 3, League of Social Democrats 1, ADPL 1, PTU 1, Neo Democrats 1, NWSC 1; independent 1
highest court(s): Court of Final Appeal (consists of the chief justice, 3 permanent judges and 20 non-permanent judges); note - a sitting bench consists of the chief justice and 3 permanent and 1 non-permanent judges
judge selection and term of office:
all judges appointed by the Hong Kong Chief Executive upon the recommendation of the Judicial Officers Recommendation Commission, an independent body consisting of the Secretary for Justice and other judges, judicial and legal professionals; permanent judges appointed until normal retirement at age 65, but can be extended; non-permanent judges appointed for renewable 3-year terms without age limit
subordinate courts:
High Court (consists of the Court of Appeal and Court of First Instance); District Courts (includes Family and Land Courts); magistrates' courts; specialized tribunals
Association for Democracy and People's Livelihood or ADPL [LIU Sung Lee]
Business and Professional Alliance [Andrew LEUNG]
Civic Party [EU Audrey]
Democratic Alliance for the Betterment and Progress of Hong Kong or DAB [TAM Yiu-cheng]
Democratic Party [Emily LAU]
Labor Party [LEE Cheuk-yan]
League of Social Democrats or LSD [LEUNG Kwok-hung]
Liberal Party [Selina CHOW]
Neo Democrats [joint leaders]
New People's Party [Regina IP Lau Su-yee]
People Power [Raymond WONG Yuk-man]
others:
Confederation of Trade Unions or CTU
Federation of Trade Unions or FTU
Neighborhood and Workers Service Center or NWSC
Professional Commons (think tank) [Charles MOK]
Professional Teachers Union or PTU
note:political blocs include: pro-democracy - ADPL, Civic Party, Democratic Party, Labor Party, League of Social Democrats, People Power, Professional Commons; pro-Beijing - DAB, FTU, Liberal Party, New People's Party, The Business and Professional Alliance; there is no political party ordinance, so there are no registered political parties; politically active groups register as societies or companies
Chinese General Chamber of Commerce (pro-China); Chinese Manufacturers' Association of Hong Kong; Confederation of Trade Unions or CTU (pro-democracy) [LEE Cheuk-yan, general secretary]; Federation of Hong Kong Industries; Federation of Trade Unions or FTU (pro-China) [CHENG Yiu-tong, executive councilor]; Hong Kong Alliance in Support of the Patriotic Democratic Movement in China [LEE Cheuk-yan, chairman]; Hong Kong and Kowloon Trade Union Council (pro-Taiwan); Hong Kong General Chamber of Commerce; Hong Kong Professional Teachers' Union [FUNG Wai-wah, president]; Neighborhood and Workers' Service Center or NWSC [LEUNG Yiu-chung, LegCo member] (pro-democracy); Civic Act-up [Cyd HO Sau-lan, LegCo member] (pro-democracy)
none (Special Administrative Region of China); Hong Kong Economic and Trade Office (HKETO) carries out normal liaison and communication with the US Government and other US entities
red with a stylized, white, five-petal Bauhinia flower in the center; each petal contains a small, red, five-pointed star in its middle; the red color is the same as that on the Chinese flag and represents the motherland; the fragrant Bauhinia - developed in Hong Kong the late 19th century - has come to symbolize the region; the five stars echo those on the flag of China
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
general assessment: modern facilities provide excellent domestic and international services
domestic:
microwave radio relay links and extensive fiber-optic network
international:
country code - 852; multiple international submarine cables provide connections to Asia, US, Australia, the Middle East, and Western Europe; satellite earth stations - 3 Intelsat (1 Pacific Ocean and 2 Indian Ocean); coaxial cable to Guangzhou, China (2012)
2 commercial terrestrial TV networks each with multiple stations; multi-channel satellite and cable TV systems available; 3 radio networks, one of which is government-funded, operate about 15 radio stations (2012)
by type:
barge carrier 2, bulk carrier 785, cargo 198, carrier 10, chemical tanker 149, container 288, liquefied gas 31, passenger 4, passenger/cargo 9, petroleum tanker 156, roll on/roll off 5, vehicle carrier 7
foreign-owned:
976 (Bangladesh 1, Belgium 26, Bermuda 20, Canada 77, China 500, Cyprus 3, Denmark 42, France 4, Germany 10, Greece 27, Indonesia 10, Iran 3, Japan 79, Libya 1, Norway 48, Russia 1, Singapore 13, South Korea 3, Switzerland 5, Taiwan 25, UAE 1, UK 33, US 44)
registered in other countries:
341 (Bahamas 3, Bermuda 4, Cambodia 10, China 18, Curacao 1, Cyprus 2, Georgia 3, India 2, Kiribati 2, Liberia 48, Malaysia 8, Malta 4, Marshall Islands 3, NZ 1, Panama 144, Saint Vincent and the Grenadines 5, Seychelles 1, Sierra Leone 7, Singapore 46, Thailand 1, UK 12, unknown 16) (2010)
no regular indigenous military forces; Hong Kong garrison of China's People's Liberation Army (PLA) includes elements of the PLA Ground Forces, PLA Navy, and PLA Air Force; these forces are under the direct leadership of the Central Military Commission in Beijing and under administrative control of the adjacent Guangzhou Military Region (2012)
despite strenuous law enforcement efforts, faces difficult challenges in controlling transit of heroin and methamphetamine to regional and world markets; modern banking system provides conduit for money laundering; rising indigenous use of synthetic drugs, especially among young people
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