Hong Kong, along with Macau, is part of the Special Administrative Regions of the People's Republic of China. Hong Kong is situated between China's southern coast, and enclosed by the Pearl River Delta and the South China Sea. With a population of 7 million people, Hong Kong is one of the most densely populated areas in the world.
After the first opium war, Hong Kong became a colony of the British Empire. After bouncing from the hands of Japan and Britain, Hong Kong finally ended up under China's rule. Hong Kong functions under the principle of 'one country, two systems'. Under its constitutional document, it is said that Hong Kong shall have a 'high degree of autonomy' in all matters except foreign relations and military defense. Their constitution also guarantees the freedom of their people.
Hong Kong is one of the world's leading financial centers and is characterized by low tax and free trade. Their currency is very popular, being the 8th most traded currency in the world. Its economic freedom, financial and economic competitiveness, and quality of life are all ranked very highly.
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