Chapter 1
Constitution and Administration
The Hong Kong Special Administrative Region (HKSAR), established in 1997, operates under the unique
'one country, two systems' principle. Under the Basic Law, Hong Kong people continue to administer the city and enjoy a high degree of autonomy.
On 1 July 1997, Hong Kong became a Special Administrative Region of the People's Republic of China (PRC) and the Basic Law came into effect. The Basic Law prescribes the systems to be practised in the HKSAR. The HKSAR enjoys a high degree of autonomy in accordance with the principle of 'one country, two systems' and the Basic Law. The HKSAR exercises executive, legislative and independent judicial power, including that of final adjudication.
The HKSAR's executive authorities and legislature are composed of permanent residents of Hong Kong. The HKSAR remains a free port, a separate customs territory and an international financial centre and may, on its own, using the name 'Hong Kong, China, maintain and develop relations, and conclude and implement agreements with foreign states and regions and relevant international organisations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural and sports fields.
Chief Executive
The Chief Executive, who is the head of the HKSAR and the HKSAR Government, leads the government. He is responsible for implementing the Basic Law, signing bills and budgets passed by the Legislative Council, promulgating laws, making decisions on government policies and issuing executive orders, among other duties. He is assisted by the Executive Council in policymaking.
Executive Council
The Basic Law requires the Chief Executive to consult the Executive Council before making important policy decisions, except for the appointment, removal and disciplining of officials and the adoption of measures in emergencies; introducing bills to the Legislative Council; making subordinate legislation; or dissolving the Legislative Council. The Chief Executive in
1