o shifted their operations to Hong Kong.[25] As textile and manufacturing industries grew with the help of population growth and low cost of labour, Hong Kong rapidly industrialised, with its economy becoming driven by exports, and living standards rising steadily.[27] The construction of Shek Kip Mei Estate in 1953 marked the beginning of the public housing estate programme, designed to cope with the huge influx of immigrants. Trade in Hong Kong accelerated even further when Shenzhen, immediately north of Hong Kong, became a special economic zone of the PRC, and established Hong Kong as the main source of foreign investment to China.[28] With the development of the manufacturing industry in southern China beginning in the early 1980s, Hong Kong's competitiveness in manufacturing declined and its economy began shifting toward a reliance on the service industry, which enjoyed high rates of growth in the 1980s and 1990s, and absorbed workers released from the manufacturing industry.[29] In 1983, Hong Kong was reclassified from a British crown colony to a dependent territory. However with the lease of the New Territories due to expire within two decades, the governments of Britain and China were already discussing the issue of Hong Kong's sovereignty. In 1984 the two countries signed the Sino-British Joint Declaration, agreeing to transfer sovereignty to the People's Republic of China in 1997,[25] and stipulating that Hong Kong would be governed as a special administrative region, retaining its laws and a high degree of autonomy for at least fifty years after the transfer. The Hong Kong Basic Law, which would serve as the constitutional document after the transfer, was ratified in 1990, and the transfer of sovereignty occurred at midnight on 1 July 1997, marked by a handover ceremony at the Hong Kong Convention and Exhibition Centre.[25] Hong Kong's economy was affected by the Asian financial crisis, and the H5N1 avian influenza, both in 1997. After a gradual recovery, Hong Kong suffered again due to an outbreak of SARS in 2003.[30] Today, Hong Kong continues to serve as an important global financial centre, but faces uncertainty over its future role with a growing mainland China economy, and its relationship with the PRC government in areas such as democratic reform and universal suffrage.[31] Etymology  Pronunciation Cantonese: - IPA: [hœ´??k????] - Jyutping: hoeng1 gong2 - Yale: Heunggóng Hokkien: - POJ: Hiong-kang Mandarin: - IPA: [?já?kà?] - Pinyin: Xianggang - Wade-Giles: Hsiang1-kang3 The name "Hong Kong" is an approximate phonetic rendering of the Cantonese pronunciation of the spoken Cantonese or Hakka name "??", meaning "fragrant harbour" in English.[32] Before 1842, the name Hong Kong originally referred to a small inlet (now Aberdeen Harbour/Little Hong Kong) between the island of Ap Lei Chau and the south side of Hong Kong Island. The inlet was one of the first points of contact between British sailors and local fishermen.[33] The reference to fragrance may refer to the harbour waters sweetened by the fresh water estuarine influx of the Pearl River, or to the incense factories lining the coast to the north of Kowloon which was stored around Aberdeen Harbour for export, before the development of Victoria Harbour.[32] In 1842, the Treaty of Nanking was signed, and the name Hong Kong was first recorded on official documents to encompass the entirety of the island.[34] Governance Main articles: Politics of Hong Kong, Government of Hong Kong, and Elections in Hong Kong Top: The Legislative Council of Hong Kong. Bottom: Government House, the official residence of the Chief Executive. In accordance with the Sino-British Joint Declaration, and reflecting the policy known as "one country, two systems", Hong Kong enjoys a high degree of autonomy as a special administrative region in all areas except defence and foreign affairs.[35] The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years beyond the 1997 handover.[36] The Basic Law is the constitutional document that outlines the executive, legislative and judicial authorities of the Hong Kong Special Administrative Region, although final authority for interpreting the Basic Law rests with the Standing Committee of the National People's Congress.[37] The primary institutions of government are: The executive: The Executive Council, headed by the Chief Executive who is elected by the Election Committee and then appointed by the Central People's Government;[38][39] The civil service: A politically neutral body that implements policies and provides government services, where public servants are appointed based on meritocracy;[15] The legislature: The Legislative Council with 60 members, half of which are directly elected by universal suffrage by permanent residents of Hong Kong, and headed by the President of the Legislative Council who serves as the speaker;[40] The judiciary: Hong Kong Judiciary, comprising the Court of Final Appeal, the High Court (which includes the Court of Appeal and the Court of First Instance), the District Courts, et cetera.[41] Judges are appointed by the Chief Executive on the recommendation of an independent commission.[14] The implementation of the Basic Law and universal suffrage have been major issues of political debate since the transfer of sovereignty. In 2002, the government's proposed anti-subversion bill pursuant to Article 23 of the Basic Law, which required the enactment of laws prohibiting acts of treason and subversion against the Chinese government, was met with fierce opposition, and eventually shelved.[18][42][43] Debate between pro-Beijing groups and Pan-democracy camp characterises Hong Kong's political scene, with the latter supporting a faster pace of democratisation.[44] Legal system and judiciary Main articles: Law of Hong Kong and Judiciary of Hong Kong The Court of Final Appeal in Central is the supreme court of Hong Kong. In contrast to mainland China's civil law system, Hong Kong continues to follow the English Common Law tradition established during British rule. Her legal system is completely independent from the legal system of China.[45] Hong Kong's courts are permitted to refer to decisions rendered by courts of other common law jurisdictions as precedents,[14] and judges from other common law jurisdictions are allowed to sit as non-permanent judges of the Court of Final Appeal.[14] Structurally, Hong Kong's court system consists of the Court of Final Appeal, the High Court, which is made up of the Court of Appeal and the Court of First Instance, and the District Court, which includes the Family Court.[41] Other adjudicative bodies include the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labour Tribunal, the Small Claims Tribunal, and the Obscene Articles Tribunal.[41] Justices of the Court of Final Appeal are appointed by Hong Kong's Chief Executive.[14] The Department of Justice is the government department responsible for handling legal matters, and its responsibilities involve providing legal advice to the government, criminal prosecution, civil representation, legal and policy drafting and reform, and international legal cooperation between different jurisdictions.[45] Apart from prosecuting criminal cases, lawyers of the Department of Justice also appear in court on behalf of the government in all civil and administrative lawsuits against the government.[45] As protector of the public interest, it may apply for judicial reviews and may intervene in any cases involving greater public interest.[46] The Basic Law, which serves as the constitutional document of the Hong Kong SAR, protects the Department of Justice from any interference by the government when exercising its control over criminal prosecution.[47] Administrative districts  Statistics New Territories No. District Population[48] Area[49] 1. Islands 138,900 175.03 km2 (67.58 sq mi) 2. Kwai Tsing 510,300 21.82 km2 (8.42 sq mi) 3. North 287,700 137.31 km2 (53.02 sq mi) 4. Sai Kung 407,300 136.39 km2 (52.66 sq mi) 5. Sha Tin 606,700 69.46 km2 (26.82 sq mi) 6. Tai Po 292,700 147.42 km2 (56.92 sq mi) 7. Tsuen Wan 292,300 60.7 km2 (23.44 sq mi) 8. Tuen Mun 493,800 84.45 km2 (32.61 sq mi) 9. Yuen Long 533,300 138.43 km2 (53.45 sq mi) Kowloon No. District Population Area 10. Kowloon City 359,400 9.97 km2 (3.85 sq mi) 11. Kwun Tong 579,400 11.05 km2 (4.27 sq mi) 12. Sham Shui Po 365,600 9.48 km2 (3.66 sq mi) 13. Wong Tai Sin 421,900 9.36 km2 (3.61 sq mi) 14. Yau Tsim Mong 285,300 6.85 km2 (2.64 sq mi) Hong Kong Island No. District Population Area 15. Central and Western 253,100 12.52 km2 (4.83 sq mi) 16. Eastern 588,700 18.81 km2 (7.26 sq mi) 17. Southern 275,700 38.95 km2 (15.04 sq mi) 18. Wan Chai 155,700 10.02 km2 (3.87 sq mi) Main article: Districts of Hong Kong Hong Kong has a unitary system of government, no local government exists since the two municipal councils were abolished in 2000. And as such there is no formal definition for its cities and towns. Administratively, Hong Kong is subdivided into 18 geographic districts, each represented by a district council whose role is to advise the government on local matters such as public facilities, community programmes, cultural activities and environmental improvements.[50] There are a total of 534 district councils seats, 405 of which are elected, while the rest are appointed by the Chief Executive and 27 ex officio chairmen of rural committees.[50] The government's Home Affairs Department communicates government policies and plans to the public through the district offices.[51] Military Main articles: Hong Kong Military Service Corps and People's Liberation Army Hong Kong Garrison As a British Colony and later territory, defence was provided by the British military under the command of the Governor of Hong Kong who was ex officio Commander-in-chief.[52] When the People's Republic of China assumed sovereignty in 1997, the British barracks were replaced by a garrison of the People's Liberation Army, comprising ground, naval, and air forces, and under the command of the Chinese Central Military Commission.[17] The Basic Law protects local civil affairs against interference by the garrison, and members of the garrison are made subject to Hong Kong laws. The Hong Kong Government remains responsible for the maintenance of public order; however, it may request the PRC government for help from the garrison in maintaining public order and in disaster relief. The PRC government is responsible for the costs of maintaining the garrison.[18] Geography and climate Main articles: Geography of Hong Kong, Environment of Hong Kong, and Climate of Hong Kong The hilly terrain of Kowloon and Hong Kong Island Areas of urban development and vegetation are visible in this false-colour satellite image. Hong Kong is located on China's south coast, 60 km (37 mi) east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the Guangdong city of Shenzhen to the north over the Shenzhen River. The territory's 1,104 km2 (426 sq mi) area consists of Hong Kong Island, the Kowloon Peninsula, the New Territories, and over 200 offshore islands, of which the largest is Lantau Island. Of the total area, 1,054 km2 (407 sq mi) is land and 50 km2 (19 sq mi) is inland water. In addition Hong Kong claims territorial waters to a distance of 3 nautical miles (5.6 km). The land area makes Hong Kong the 179th largest habited territory in the world.[3][8] As much of Hong Kong's terrain is hilly to mountainous with steep slopes, less than 25% of the territory's landmass is developed, and about 40% of the remaining land area is reserved as country parks and nature reserves.[53] Most of the territory's urban development exists on Kowloon peninsula, along the northern edge of Hong Kong Island and in scattered settlements throughout the New Territories.[54] The highest elevation in the territory is at Tai Mo Shan, at a height of 957 metres (3,140 ft) above sea level.[55] Hong Kong's long, irregular and curvaceous coast line provides it with many bays, rivers and beaches.[56] Despite Hong Kong's reputation of being intensely urbanised, the territory has made much effort to promote a green environment,[57] and recent growing public concern has prompted the severe restriction of further land reclamation from Victoria Harbour. Awareness of the environment is growing as Hong Kong suffers from increasing pollution compounded by its geography and tall buildings. Approximately 80% of the city's smog originates from other parts of the Pearl River Delta.[58] Situated just south of the Tropic of Cancer, Hong Kong's climate is humid subtropical climate (Köppen climate classification Cwa). Summer is hot and humid with occasional showers and thunderstorms, and warm air coming from the southwest. It is also the time when typhoons are most likely, sometimes resulting in flooding or landslides. Winter weather usually starts sunny and becomes cloudier towards February, with the occasional cold front bringing strong, cooling winds from the north. The most pleasant seasons are spring, although changeable, and autumn, which is generally sunny and dry.[59] Hong Kong averages 1,948 hours of sunshine per year,[60] while the highest and lowest ever recorded temperatures at the Hong Kong Observatory are 36.1 °C (97.0 °F) and 0.0 °C (32.0 °F), respectively.[61] A view from Hong Kong Island, looking north over Central district, the harbour and Kowloon Weather data for Hong Kong Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Average high °C (°F) 18.6 (65) 18.6 (65) 21.5 (71) 25.1 (77) 28.4 (83) 30.4 (87) 31.3 (88) 31.1 (88) 30.2 (86) 27.7 (82) 24.0 (75) 20.3 (69) 25.6 (78) Average low °C (°F) 14.1 (57) 14.4 (58) 16.9 (62) 20.6 (69) 23.9 (75) 26.1 (79) 26.7 (80) 26.4 (80) 25.6 (78) 23.4 (74) 19.4 (67) 15.7 (60) 21.1 (70) Precipitation mm (inches) 24.9 (0.98) 52.3 (2.06) 71.4 (2.81) 188.5 (7.42) 329.5 (12.97) 388.1 (15.28) 374.4 (14.74) 444.6 (17.5) 287.5 (11.32) 151.9 (5.98) 35.1 (1.38) 34.5 (1.36) 2,382.7 (93.81) Sunshine hours 141.7 93.8 89.6 101.8 138.6 158.3 214.9 189.7 171.8 191.1 178.2 173.3 1,842.9 % Humidity 73 78 82 83 84 82 81 82 79 74 70 69 78 Avg. rainy days 5.6 9.5 10.5 11.7 15.5 18.8 17.8 17.4 14.8 8.1 5.7 4.3 139.7 Source: Hong Kong Observatory[62] 2008 Economy Main article: Economy of Hong Kong International Finance Centre. Hong Kong is one of the world's leading financial centres.[63] Its highly developed capitalist economy has been ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years.[64][65][66] It is an important centre for international finance and trade, with one of the greatest concentration of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid development between the 1960s and 1990s. In addition, Hong Kong's gross domestic product, between 1961 and 1997, has grown 180 times larger than the former while per capita GDP rose by 87 times.[67][68] The Hong Kong Stock Exchange is the sixth largest in the world, with a market capitalisation of US$2.97 trillion as at October 2007. In 2009, Hong Kong raised 22 percent of worldwide IPO capital, making it the largest centre of initial public offerings in the world.[69] Hong Kong's currency is the Hong Kong dollar, which has been pegged to the U.S. dollar since 1983.[70] The Government of Hong Kong plays a passive role in the financial industry, mostly leaving the direction of the economy to market forces and the private sector. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.[71] Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the SARS outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended.[72][73] The territory has little arable land and few natural resources, so it imports most of its food and raw materials. Hong Kong is the world's eleventh largest trading entity,[74] with the total value of imports and exports exceeding its gross domestic product. Hong Kong is the world's largest re-export centre.[75] Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Even before the transfer of sovereignty, Hong Kong had established extensive trade and investment ties with the mainland, and now enables it to serve as a point of entry for investment flowing into the mainland. At the end of 2007, there were 3.46 million people employed full-time, with the unemployment rate averaging 4.1%, the fourth straight year of decline.[76] Hong Kong's economy is dominated by the service sector, which accounts for over 90% of its GDP, while industry now constitutes just 9%. Inflation was at 2% in 2007, and Hong Kong's largest export markets are mainland China, the United States, and Japan.[3][77] As of 2009, Hong Kong is the fifth most expensive city for expatriates, behind Tokyo, Osaka, Moscow, and Geneva. In 2008, Hong Kong was ranked sixth, and in 2007, it was ranked fifth.[78] In 2009, Hong Kong was ranked third in the Ease of Doing Business Index.[79] Demographics Hong Kong is one of the most densely populated areas in the world, at 6,200 people per km². The Tian Tan Buddha on Lantau Island Main article: Demographics of Hong Kong The territory's population is more than seven million. In 2008, Hong Kong had a low birth rate of 11.3 per 1,000 population and a fertility rate of 1,056 children per 1,000 women.[80] However, the population in Hong Kong continues to grow due to the influx of immigrants from mainland China, approximating 45,000 per year – there exists a daily quota of 150 people from Mainland China with family ties in Hong Kong are granted a 'one way permit'.[81] According to a United Nation report, life expectancy in Hong Kong is 81.8 years as of 2006, the second highest in the world.[82] About 95% of the people of Hong Kong are of Chinese descent,[83] the majority of whom are Cantonese, Hakka and Chiu Chow. The remaining 5% of the population is composed of non-ethnic Chinese forming a highly visible group despite their smaller numbers.[83] In addition, there are in excess of 300,000 foreign domestic helpers from Indonesia and the Philippines, according to official figures.[84] There is a South Asian population of Indians, Pakistanis and Nepalese. Some Vietnamese refugees have become permanent residents of Hong Kong. There are also a number of Europeans (mostly British), Americans, Australians, Canadians, Japanese, and Koreans working in the city's commercial and financial sector.[85] Residents from mainland China do not have the right of abode in Hong Kong, nor are they allowed to en