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Despite the handover of sovereignty over Hong Kong from the United Kingdom to China in 1997, the principles of “one country two systems” reaffirmed the autonomy of Hong Kong in a number of respects. In accordance with the Sino-British Joint Declaration and Basic Law of Hong Kong, the city is able to enjoy a high degree of autonomy over the systems and policies practiced locally, including social and economic systems, as well as the executive, legislative and judicial systems. Additionally, with its image as a robust financial market largely thanks to the institutions inherited from its colonial era, Hong Kong is able to attract a number of financial activities from China and has firmly established itself as a leading international financial center. Nonetheless, there have been concerns that the advantages of Hong Kong started to fade after its reunification with China. This Article seeks to analyze how Hong Kong’s capitalist system shields the city from the socialist system of China under the principles of “one country two systems,” allowing the city to maintain its position as a premier financial center. It explores the regulatory gap between Hong Kong and China, illustrating that Hong Kong’s strength stems from the operation of a strong company and financial law regime independent of the legal regime in China.