Hong Kong became a colony of the British Empire after the Qing Empire ceded Hong Kong Island at the end of the First Opium War in 1842. The colony expanded to the Kowloon Peninsula in 1860 after the Second Opium War, and was further extended when Britain obtained a 99-year lease of the New Territories in 1898. The whole territory was transferred to China in 1997. As a special administrative region, Hong Kong maintains separate governing and economic systems from that of mainland China under a principle of “one country, two systems“.
Originally a sparsely populated area of farming and fishing villages, the territory has become one of the world’s most significant financial centres and commercial ports. It is the world’s tenth-largest exporter and ninth-largest importer. Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and its currency, the Hong Kong dollar, is the eighth most traded currency in the world. Hong Kong is home to the second-highest number of billionaires of any city in the world, the highest number of billionaires of any city in Asia, and the largest concentration of ultra high-net-worth individuals of any city in the world. Although the city has one of the highest per capita incomes in the world, severe income inequality exists among its residents.
Hong Kong is a highly developed territory and ranks fourth on the UN Human Development Index. The city also has the largest number of skyscrapers of any city in the world, and its residents have some of the highest life expectancies in the world.The dense space also led to a developed transportation network with public transport rates exceeding 90 percent. Hong Kong is ranked sixth in the Global Financial Centres Index and is ranked fourth in Asia after Tokyo, Shanghai and Singapore.
Due to China’s large population and area, the administrative divisions of China have consisted of several levels since ancient times. The constitution of China provides for three de jure levels of government. Currently, however, there are five practical (de facto) levels of local government: the provincial (province, autonomous region, municipality, and special administrative region), prefecture, county, township, and village.Since the 17th century, provincial boundaries in China have remained largely static. Major changes since then have been the reorganization of provinces in the northeast after the establishment of the People’s Republic of China and the formation of autonomous regions, based on Soviet ethnic policies. The provinces serve an important cultural role in China, as people tend to identify with their native province.