Introduction to Hong Kong

by Lisa Li

Survivor's Guide
Hong Kong in the News
Epicurean Delights

With skyscrapers like the Two International Finance Centre, the world’s 11th largest trading location contests Western cities such as both Paris and New York. Hong Kong has certainly earned its nickname “Pearl of the Orient” with merit. After the construction of Disneyland, Hong Kong also earned the title “Asia’s World City.” As the island boasts a 4.3% GDP growth, Hong Kong seems unlikely to lose its position as a leading financial hub of the East.

With its monetary policy being to maintain a stable currency, Hong Kong has raked in the HK and run with the dollar with no problem. Having been pegged to U.S. currency since 1983, Hong Kong surged much quicker and earlier than other Chinese cities including Shanghai and Beijing. Earning much of its revenue from tourism, Hong Kong has enjoyed a more heavily weighted currency than the Chinese Yuan until only recently, with the Yuan at a rate of 7.74 and the HK at a rate of 7.81 as of February 18, 2007.

Though mainland China recently surged in economic standing due to, finally, the peg of the dollar, Hong Kong still stands salient at the forefront of modern culture. Possessing famous shopping districts like “The Lanes” and the “ladder” streets1, Hong Kong draws not only tourists but also hometown shoppers. Of course, like most other Chinese cities, authentic side-street venders are as popular as ever, but restaurants such as Fat Angelo’s and Delifrance cater to foreign tastes as well.

Despite Hong Kong’s flourishing economic and social standing, the island’s political transition is still of much contention. Hong Kong will gain full-blown independence of its 18 districts in 2047. As of now, however, it is still operating under a joint-government Sino-British structure. With the policy of “one country, two systems,” Hong Kong handles its own legal system, monetary system, customs policy, cultural delegation, international sports teams, and immigration policy. Still, influence from the mainland is unavoidable. The upcoming chief executive election in March is a prime example of just how much clout the Beijing government can have in Hong Kong politics.

Hong Kong's 18 Districts