Country Profiles

Hong Kong Special Administrative Region (HKSAR)
of the People's Republic of China
March 2003
 

Hong Kong became a Special Administrative Region of the People's Republic of China (PRC) on 1 July 1997, after a century and a half of British administration. It is promised that under its constitutional document, the Basic Law, the existing economic, legal and social systems will be maintained for at least 50 years after 1997.
 

General Information

Geography

  • Situated at the south-eastern tip of China and positioned at the centre of East Asia
  • A total area of 1,101 square kilometres covers the Hong Kong Island, the Kowloon Peninsula and the New Territories, including 235 outlying islands

Population

  • 6.816 million (by the end of 2002)

Ethnic Groups (as in 2001)

  • Chinese: 95%
  • Filipino: 2.1%
  • Indonesian: 0.8%
  • British: 0.3%
  • Indian: 0.3%
  • Thai: 0.2%
  • Japanese: 0.2%
  • Nepalese: 0.2%
  • Pakistani: 0.2%
  • Others: 0.7%

Religion (as in 2001)

  • Mixture of Local Religions Including Buddhists and Taoists: 90%
  • Christians: 8.0%
  • Muslims: 1.2%
  • Hindus: 0.2%
  • Sikhs: 0.1%
  • Others: 0.5%

Language

  • Chinese (Cantonese and Mandarin), English

Currency

  • Hong Kong Dollar, and the official exchange rate is US$1.00 = HK$7.80

Source: Government Information Centre
 

Brief History

1842   After the Opium War, the Treaty of Nanking (Nanjing) ceded Hong Kong to Britain in perpetuity.
1860   Beijing Convention ceded Kowloon to Britain.
1898   June 9
"Convention between Great Britain and China respecting an extension of Hong Kong Territory" was signed in Peking (Beijing). The New Territories were leased to Britain for 99 years from 1 July 1898.
1941   Hong Kong was attacked by the Japanese armed forces on 8 December and then  surrendered on the Christmas Day. The Japanese occupation lasted for three years and eight months.
1945   Following the surrender of Japan on 14 August, the British then reclaimed the territory.
1948-49   When the forces of the Chinese Nationalist Government began to face defeat in the civil war at the hands of the communists, Hong Kong experienced an influx of civilians from China.
1967   A series of civil disturbances occurred.
1984   19 December
The Sino-British Joint Declaration on the Question of Hong Kong (The Joint Declaration) was signed between the Chinese and British Governments. It sets out, among other things, the basic policies of the People's Republic of China (PRC) regarding Hong Kong.
1989   Millions protested against Beijing Massacre of pro-democracy movement activists.
1990   4 April
The National People's Congress Standing Committee (NPCSC) of the PRC adopted the Basic Law for the Hong Kong Special Administrative Region (HKSAR), together with the designs for the flag and emblem of the HKSAR.
1992   Chris Patten was appointed the last British governor of Hong Kong and introduced electoral reform.
1995   The first democratic elections was held for the Legislative Council, 16 out of 20 seats were taken by the Democrats.
1997   1 July - Sovereignty over Hong Kong was returned to the PRC and the Basic Law came into effect.
2002   1 July - Implementation of the Accountability System started.
 

The Basic Law

Came into effect on 1 July 1997 as a mini-constitution and a cornerstone of the "One Country, Two Systems" principle. It prescribed the systems practised and the fundamental rights guaranteed in the HKSAR.

Read the Basic Law
 

The Government Structure

Headed by the Chief Executive:

  • The term of office is five years, with a maximum of two consecutive terms.
  • The first and incumbent Chief Executive, Mr. Tung Chee-hwa was recommended by a 400-member Selection Committee to the Central People's Government (CPG) for appointment. The 400 members were HKSAR residents representing certain sectors of the society. Mr. Tung was then returned unopposed for a second term (July 2002 - June 2007).
  • According to the Basic Law (Article 45 & 68), the ultimate aim is to select the Chief Executive by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures. The Basic Law allows for the possibility of such changes only after 2007 and it requires the approval of the National People's Congress of the PRC.

Major Policy Decisions Advised by the Executive Council (also known as ExCo), the quasi-cabinet:

  • The members’ appointment or removal is decided by the Chief Executive. Since 1 July 2002, its membership comprises the 14 Principal Officials and five non-officials.
  • The ExCo normally meets once a week with the Chief Executive presiding over its meetings. The Basic Law requires the Chief Executive to consult the ExCo before making important policy decisions, introducing bills into the Legislative Council, making subordinate legislation or dissolving the Legislative Council. If the Chief Executive does not accept a majority opinion of the  ExCo, he must put the specific reasons on record.

The Government in a Two-Tier System:

  • At the central level is the Legislative Council which legislates, controls public expenditure and monitors the performance of the Administration;
  • At the district level, 18 district councils advise on the implementation of policies in their respective areas.

The Legislative Council (also known as LegCo):

  • According to the Basic Law, the LegCo is constituted by election. The method for its formation is to be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress towards full democracy.
  • From 2000 to 2004, its electoral base comprises 60 people,
    • 24 are elected on a one-vote per citizen basis (Geographical Constituencies);
    • 30 are reserved for representatives of professional associations (Functional Constituencies);
    • 6 are elected by an election committee.

    The Basic Law provides that changes to the composition of the LegCo after 2007 may be made by a two-thirds majority of its members with the consent of the Chief Executive. It also provides that the ultimate aim is the election of all its members by universal suffrage. Any such changes are to be reported to the Standing Committee of the National People's Congress of the PRC for record.

  • The term of office is four years. The second term began on 1 October 2000.
  • The President of the LegCo is elected by and from among members of the Council.
  • As provided for in Article 73 of the Basic Law, the LegCo exercises the following powers and functions:
    • To enact, amend or repeal laws in accordance with the provisions of the Basic Law and legal procedures;
    • To examine and approve budgets introduced by the Government;
    • To approve taxation and public expenditure;
    • To receive and debate the policy addresses of the Chief Executive;
    • To raise questions on the work of the Government;
    • To debate any issue concerning public interests;
    • To endorse the appointment and removal of the judges of the Court of Final Appeal and the Chief Judge of the High Court;
    • To receive and handle complaints from Hong Kong residents.

Official Web Site of the Legislative Council

The District Councils:

  • The 18 district councils advise the Government on matters affecting the well-being of the people and on the adequacy and priorities of government programmes in their respective districts. They also undertake environmental improvements and promote recreational, cultural and community activities within their respective districts.
  • The term of office is four years. The first one with 390 elected members, 27 ex-officio members and 102 appointed members began on 1 January 2000.

Main Administrative & Executive Functions Carried out under the Accountability System:

  • 14 Principal Officials are appointed by and directly answerable to the Chief Executive with a term of 5 years to dovetail with the Chief Executive's. The most important officials (2002-2007) are
    • The Chief Secretary for Administration, Mr. Donald Tsang Yam-kuen;
    • The Financial Secretary, Mr. Antony Leung Kam-chung;
    • The Secretary for Justice, Ms Elsie Leung Oi-sie;
    • 11 Directors of Bureaux, which formulate policies and initiate legislative proposals.

    Two other key players are the Director of Chief Executive's Office and the head of Central Policy Unit.

Source: Government Information Centre
 

The Legal System

Based on the Rule of Law and the Independent Judiciary

  • It is responsible for the administration of justice and interprets the laws enacted by the legislature.
  • The principle of prosecutorial independence is guaranteed by Article 63 of the Basic Law, which provides that the Department of Justice of the HKSAR shall control criminal prosecutions, free from any interference. Members of the Judiciary are independent of the executive and legislative branches of the Government.
  • The Secretary for Justice, who heads the Department of Justice, is ultimately responsible for all prosecutions in the HKSAR.

The Courts of Justice

  • The court system comprises the Court of Final Appeal, the High Court (which includes the Court of Appeal and the Court of First Instance), the District Court (which includes the Family Court), the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, and also the Labour Tribunal, the Small Claims Tribunal and the Obscene Articles Tribunal.
  • The Chief Justice of the Court of Final Appeal, The Hon Mr Justice Andrew Li Kwok-nang, is the head of the Judiciary.

Official Web Site of the Judiciary
 

Relationship with the Central People's Government (CPG)

Under the principle of 'One Country, Two Systems', it is promised that:

  • The socialist system and policies of the CPG are not practised in the HKSAR, and Hong Kong's previous free market system and life style shall remain unchanged for 50 years.

The Basic Law provides for a high degree of autonomy for the HKSAR:

  • The HKSAR is responsible for the maintenance of public order in the Region. (Article 14)
  • The CPG authorizes the HKSAR to conduct relevant external affairs on its own. (Article 13)
  • The CPG is responsible for the defence and the foreign affairs relating to the HKSAR. (Articles 13-14)
  • National laws are not applied in the HKSAR except for those listed in Annex III to the Basic Law. Laws listed in Annex III shall be confined to those relating to defence and foreign affairs as well as other matters outside the limits of the autonomy of the HKSAR. The laws listed in Annex III shall be applied locally by way of promulgation or legislation by the HKSAR. (Article 18)
  • No department of the CPG and no province, autonomous region, or municipality directly under the Central Government may interfere in the affairs which the HKSAR administers on its own in accordance with the Basic Law. (Article 22)

The senior Beijing official in charge of Hong Kong affairs is Vice-Premier Qian Qi-chen
 

The Economic System

Under the 'One Country, Two Systems' principle, a Laissez-Faire Economy has been maintained  in  Hong Kong after its handover. Having such approach, the Government sees its primary roles as:

  • maintaining an institutional framework conducive to market development, including reinforcing the institutional strengths, such as the rule of law, a low and simple tax regime, a level playing field, and a business-friendly environment;
  • providing infrastructure, in which the private sector will not invest;
  • providing an appropriate environment and the resources required to raise the quality of human capital, which includes investing in education and attracting outside talent to Hong Kong;
  • securing more favourable market access for the local enterprises through multilateral and bilateral economic and trade negotiations and participation in relevant economic and trade organisations; and, in conjunction with the appropriate organisations, also assisting local enterprises to promote their products outside Hong Kong;
  • considering the need to take appropriate measures to secure projects beneficial to the economy as a whole when the private sector is not ready to invest in them.

Contributions of the Various Economic Sectors:

  • Primary Production
    (including agriculture, fisheries, mining and quarrying)
    is insignificant in Hong Kong. Its development is much constrained by the limited natural resource and the relative land scarcity.
  • Secondary Production
    (comprising manufacturing, construction, and supply of electricity, gas and water)
    played a significant role up to the early 1980s. Since China adopted economic reform and an open door policy in 1978, there has been an ongoing relocation of labour-intensive production processes to China and thus a noticable shrinkage of the manufacturing sector in Hong Kong. The concurrent rapid expansion in the services sector is another relevant factor.
  • Tertiary Services Sector
    (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and business services; community, social and personal services; and ownership of premises)
    became the dominant economic sector since the 1980s. The policy change in China created abundant business opportunities for a wide range of service activities, including specifically freight and passenger transport, travel and tourism, telecommunications, banking, insurance, real estate, and professional services such as financial, legal and accounting services. At the same time Hong Kong has experienced structural transformation of its economy from skill-based activities to knowledge-based activities.

Source: Hong Kong Yearbook
 

Human Rights Institutions

HKSAR does not have a general human rights commission.

The Equal Opportunities Commission is a kind of human rights watchdog:

  • It is a statutory body set up in 1996 to implement the Sex Discrimination Ordinance (SDO), the Disability Discrimination Ordinance (DDO) and the Family Status Discrimination Ordinance (FSDO).
  • It carries out its mandate without interference from the Government.
  • There were two cases litigated against the Government in 2000 & 2001.  The District Court held two government departments liable for unlawful employment discrimination.  The Court of First Instance issued a declaration that the Department of Education's system of allocating students to secondary schools was unlawful.
 

Recent Human Rights Issues

National Security Legislation:

Article 23 of the Basic Law provides that the HKSAR shall enact laws on its own to protect national security. A lack of true democracy in the Region, and the presentation on proposals without exact wording of the proposed legislation, raised concerns among legal professionals, journalists, Church groups, human rights groups and other NGOs in Hong Kong. ACPP's concerns were recorded in a submission to the Security Bureau.

Read Hotline Urgent Appeal for more information

Right of Family Reunion:

The colonial history of Hong Kong and its special relationship with China made cross-border family and marriage common. The problem of separation of families became a human rights issue when the HKSAR Government did not recognise the right of abode of PRC-born children granted in the Basic Law. The Rule of Law was undermined by the request for reinterpretation of the related Basic Law Articles by the National People's Congress Standing Committee (NPCSC) of the PRC, to overturn the ruling by the Court of Final Appeal in 1999. The Catholic Church has been a leading advocate on this issue.

Read Hotline Urgent Appeal for more information

Right of Assembly:

The HKSAR Government tightened the Public Order Ordinance, which now requires a “notice of no objection” for rallies and protests from the Police. In the first five years after handover, there were cases involving peaceful protest being curbed by the Police, such as the confrontation during the Fortune Global Forum in May 2001, the arrest of student leaders and the handcuffing of reporters during the clearance of peaceful protesters.

Racism:

Hong Kong has been bound by the International Convention on the Elimination of All Forms of Racial Discrimination since 1979. The UN Committee on the Elimination of Racial Discrimination has pointed out on more than one occassion that the authorities must enact legislation prohibiting racial discrimination in both the public and private sectors. The HKSAR Government has not fulfilled these treaty obligations, and racism remains a human rights issue in the HKSAR.

Source: JPHK, South China Morning Post