As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong has remained as the world's freest economy, according to Index of Economic Freedom since the inception of the index in 1995. The economy, governed under positive non-interventionism, is highly dependent on international trade and finance and in 2009 the real economic growth fell by 2.8% as a result of the global financial turmoil. Despite the downturn, Hong Kong’s economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures and close ties with the mainland China, enable it to quickly respond to changing circumstances.

Hong Kong's gross domestic product, between 1961 and 1997, has grown 180 times while per capita GDP rose by 87 times. Its economy size is slightly bigger than Israel and Ireland and its GDP per capita at purchasing power parity is the 6th highest globally in 2011, more than United States and Netherlands and slightly lower than the Brunei.

Coordinates: 22°16′42″N 114°09′32″E / 22.27833°N 114.15889°E / 22.27833; 114.15889

Hong Kong (Chinese: 香港) is one of two special administrative regions (SARs) of the People's Republic of China (PRC), the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is known for its expansive skyline and deep natural harbour. With a land mass of 1,104 km² (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong's population is 95 percent ethnic Chinese and 5 percent from other groups. Hong Kong's Han Chinese majority originate mainly from the cities of Guangzhou and Taishan in the neighbouring Guangdong province.

Hong Kong became a colony of the British Empire after the First Opium War (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon Peninsula in 1860 and then the New Territories in 1898. It was occupied by Japan during the Pacific War, after which the British resumed control until 1997, when China resumed sovereignty. The region espoused minimum government intervention under the ethos of positive non-interventionism during the colonial era. The time period greatly influenced the current culture of Hong Kong, often described as "East meets West", and the educational system, which used to loosely follow the system in England until reforms implemented in 2009.