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General Overview
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 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.

Demographics
About 95% of Hong Kong's population is of Chinese descent, the majority of which is Cantonese or from ethnic groups such as Hakka and Teochew. The remaining 5% of the population is composed of non-ethnic Chinese forming a highly visible group despite their smaller numbers. A South Asian population of Sindhis, Indians, Pakistanis and Nepalese are found. Vietnamese refugees have become permanent residents. Approximately 140,000 Filipinos live and work in Hong Kong with the majority as foreign domestic helpers. An increasing number of domestic workers also originate from Indonesia.

Country name: Hong Kong Special Administrative Region
Population: 7,018,636 (July 2008 est.)
Nationality: Chinese/Hong Konger
Languages: Chinese (Cantonese) 89.2% (official), other Chinese dialects 6.4%, English 3.2% (official), other 1.2% (2001 census)
Ethnic Groups: Chinese 95%, Filipino 1.6%, Indonesian 1.3%, other 2.1% (2006 census)

Economy
Hong Kong has a free market economy highly dependent on international trade. In 2006, the total value of goods and services trade, including the sizable share of reexports, was equivalent to 400% of GDP. The territory has become increasingly integrated with mainland China over the past few years through trade, tourism, and financial links. The mainland has long been Hong Kong's largest trading partner, accounting for 46% of Hong Kong's total trade by value in 2006. 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 13.6 million in 2006, when they outnumbered visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. Bolstered by several successful initial public offerings in early 2007, by September 2007 mainland companies accounted for one-third of the firms listed on the Hong Kong Stock Exchange, and more than half 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 and now accounts for 91% of the territory's GDP. Hong Kong's natural resources are limited, and food and raw materials must be imported. GDP growth averaged a strong 5% from 1989 to 2007, despite the economy suffering two recessions during the Asian financial crisis in 1997-98 and the global downturn in 2001-02. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

GDP (purchasing power parity): $292.8 billion (2007 est.)
GDP - real growth rate: 6.3% (2007 est.)
GDP - per capita (PPP): $42,000 (2007 est.)
Inflation rate (consumer prices): 2% (2007 est.)
Exports: $345.9 billion f.o.b., including reexports (2007 est.)
Imports: $365.6 billion (2007 est.)

Government
In accordance with the Sino-British Joint Declaration, and reflecting the policy known as "one country, two systems" by the People's Republic of China, Hong Kong enjoys a high degree of autonomy as a special administrative region in all areas except defence and foreign affairs.[10] 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.[11] The Basic Law is the constitutional document that outlines executive, legislative and judicial authorities of government.

Administrative divisions: None (special administrative region of China)
Legal system: Based on English common law
Constitution: Basic Law, approved in March 1990 by China's National People's Congress, is Hong Kong's "mini-constitution"
Independence: None (special administrative region of China)

References
Government of Hong Kong - Official Website
Hong Kong General Chamber of Commerce
Central Intelligence Agency (CIA) - The World Factbook
Nation Master - World Data Center
Wikipedia - The Free Encyclopedia
Lonely Planet - Travel Guidebook


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