Hong Kong Handover refers to the return of the former British colony, Hong Kong, to the People's Republic of China on July 1, 1997. China regained its sovereignty, and Hong Kong became a special administrative region under the policy of “one country, two systems.” Hong Kong's Basic Law guarantees the continuity of its capitalist system for 50 years. Chinese President Jiang Zemin and Premier Li Peng, as well as British Prime Minister Tony Blair and the Prince of Wales attended the special ceremony among foreign dignitaries. Tung Chee-hwa replaced the last British Governor Chris Patten and became Hong Kong's first chief executive.

Hong Kong, with an area of 422 square miles and a population of 6.3 million by 1997, consists of three regions. The island of ...