According to the “Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People’s Republic of China on the Question of Hong Kong” and “The Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China”, Hong Kong will become a Special Administrative Region of the People’s Republic of China from 1 July 1997.
It will enjoy a high degree of autonomy with Hong Kong people ruling Hong Kong. Hong Kong will become an independent tariff and trade region and an international financial centre in China but with its own currency. In order to maintain its status as an international financial centre, Hong Kong will inevitably face various challenges.