Demographic, economic, social and cultural characteristics

1. Relevant demographic indicators and social, economic and cultural indicators in respect of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) are at Annex A.
2. The population in Hong Kong at mid-2011 was 7.07 million. With the annual population growth ranging from 0.4% to 1.1% in recent years, the population at mid-2017 increased to 7.39 million. The population increase was mainly due to the continuous inflow of Mainland Chinese residents arriving in Hong Kong for family reunion and the natural increase during the period.
3. The majority of the population in Hong Kong are Chinese (92%). The number of ethnic minorities in Hong Kong was 584 383 (about 8% of the population) in 2016, with an increase of 29.5% over 2011. Among all the ethnic minorities in Hong Kong, the number of Filipinos increased markedly from 133 018 in 2011 to 184 081 in 2016, while the proportion of Filipinos among all ethnic minorities increased from 29.5% to 31.5%.
4. In 2016, in terms of the language most commonly spoken, 94% of Chinese aged five and over usually spoke Cantonese at home, followed by other Chinese dialects (other than Cantonese and Putonghua) (3.4%). On the other hand, among ethnic minorities aged five and over, English was the language most commonly spoken at home (45.6%), followed by Cantonese (30.3%).
5. Ageing of the population has continued. While the proportion of people aged under 15 fell slightly from 11.6% in 2011 to 11.4% in 2017, the proportion of people aged 65 and over rose from 13.3% to 16.4%.
6. Hong Kong is a small and open economy. Hong Kong’s per capita Gross Domestic Product (GDP) in 2016 stood at around HK$339,500. Its economy has become increasingly service-oriented over the past decades, the share of the service sectors in GDP rose from 88.1% in 2001 to 92.2% in 2016.
7. Hong Kong constantly strives to be a knowledge-based and high value-added economy. The HKSAR Government is committed to maintaining a business-friendly environment, strengthening the competitive edge of the four pillar industries (namely trading and logistics, financial services, professional and producer services, and tourism), and promoting and supporting emerging industries with huge potential (e.g. innovation and technology, creative industries, and high value-added maritime services), with an aim to fostering economic diversification and injecting new and sustainable impetus to the Hong Kong economy. In face of such developments, demand for highly-educated and skilled talents is expected to continuously increase.

Constitutional, political and legal structure of the HKSAR

Basic Law of the HKSAR

8. In accordance with the provisions of Article 31 and sub-paragraph 13 of Article 62 of the Constitution of the People’s Republic of China, and the relevant decisions of the National People’s Congress (NPC) adopted at the Third Session of the Seventh NPC on 4 April 1990, the HKSAR was established on 1 July 1997. The Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China (Basic Law) also came into effect on the same day.
9. The Basic Law is the most important legal document for the HKSAR. It prescribes the relationship between the Central Authorities and the HKSAR, fundamental rights and duties of the residents, and the social, political, cultural and other systems to be practised in the HKSAR.
10. Among other matters, the Basic Law provides that –
1. the HKSAR shall be a local administrative region of the People’s Republic of China, which shall enjoy a high degree of autonomy and come directly under the Central People’s Government. The Central People’s Government shall be responsible for the defence of, and the foreign affairs relating to, the HKSAR;
2. the NPC authorises the HKSAR to exercise a high degree of autonomy and enjoy executive, legislative and independent judicial power, including that of final adjudication, in accordance with the provisions of the Basic Law. The power of final adjudication of the HKSAR shall be vested in the Court of Final Appeal established in the Region;
3. the executive authorities and legislature of the HKSAR shall be composed of permanent residents of Hong Kong in accordance with the relevant provisions of the Basic Law;
4. under the principle of “one country, two systems”, the socialist system and policies shall not be practised in the HKSAR and Hong Kong’s previous capitalist system and way of life shall remain unchanged for 50 years;
5. the laws previously in force in Hong Kong, that is, the common law, rules of equity, ordinances, subordinate legislation and customary law shall be maintained, except for any that contravenes the Basic Law, and subject to any amendment by the legislature of the HKSAR;
6. national laws shall not be applied in the HKSAR except for those listed in Annex III to the Basic Law¹ and that the laws listed therein shall be applied locally by way of promulgation or legislation by the Region. The Standing Committee of the NPC (NPCSC) may add to or delete from the list of laws in Annex III after consulting the Committee for the Basic Law of the HKSAR and the HKSAR Government;
7. the HKSAR may conduct relevant external affairs on its own in accordance with the Basic Law 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;
8. the HKSAR shall remain a free port, a separate customs territory and an international financial centre. The HKSAR Government shall, on its own, formulate monetary and financial policies, safeguard the free operation of financial business and financial markets, and regulate and supervise them in accordance with law. The HKSAR Government safeguards the free flow of capital within, into and out of the Region. The HKSAR Government issues and manages its own currency;
9. the HKSAR Government formulates its own policies on the development of education, science, culture, sports, labour and social welfare;
10. Hong Kong residents enjoy a wide range of rights and freedoms prescribed in Chapter III of the Basic Law; and
11. the provisions of the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR), and international labour conventions as applied to Hong Kong shall remain in force and shall be implemented through the laws of the HKSAR.

The rights and freedoms of Hong Kong residents will be dealt with under the section below on “General framework for the protection and promotion of human rights”.

Political Structure

11. The Chief Executive (CE) of the HKSAR is the head of the Region, and is accountable to the Central People’s Government and the HKSAR in accordance with the provisions of the Basic Law. The Executive Council (ExCo) assists her in policy-making. The HKSAR Government formulates and implements policies, introduces bills, implements law and provides services to the community. The Legislative Council (LegCo) is the legislature of the HKSAR. District Councils are consulted on district administration and other affairs. The Judiciary is independent of the executive authorities and the legislature.

Chief Executive

12. The CE leads the HKSAR Government and decides on Government policies. She is responsible for the implementation of the Basic Law and other laws which, in accordance with the Basic Law, apply in the HKSAR. Moreover, she signs bills and budgets passed by the LegCo. She also nominates and reports to the Central People’s Government for appointment of principal officials. She appoints or removes judges of the courts at all levels and holders of public office in accordance with legal procedures. The CE also conducts, on behalf of the HKSAR Government, external affairs and other affairs as authorised by the Central Authorities.
13. The Basic Law provides that the CE of the HKSAR shall be selected by election or through consultations held locally and be appointed by the Central People’s Government. The method for selecting the CE shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress. The ultimate aim is the selection of the CE by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures.

Executive Council

14. The ExCo assists the CE in policy-making. Under Article 56 of the Basic Law, except for the appointment, removal and disciplining of officials and the adoption of measures in emergencies, the CE shall consult the ExCo before making important policy decisions, introducing bills to the LegCo, making subordinate legislation, or dissolving the LegCo. The CE in Council also determines statutory appeals, petitions and objections. If the CE does not accept a majority opinion of the ExCo, she shall put the specific reasons on record.
15. The ExCo normally meets once a week. It is presided over by the CE. As provided for in Article 55 of the Basic Law, members of the ExCo shall be appointed by the CE from among the principal officials of the executive authorities, members of the LegCo and public figures. Their term of office shall not extend beyond the expiry of the term of office of the CE who appoints them.
16. The current membership of the ExCo comprises the 16 Principal Officials appointed under the Political Appointment System and 16 non-official members.

The structure of the HKSAR Government

17. The CE is the head of the HKSAR Government. If the CE is not able to discharge her duties for a short period, such duties shall temporarily be assumed by one of the three Secretaries of Departments, namely the Chief Secretary for Administration (CS), the Financial Secretary (FS), or the Secretary for Justice (SJ), in that order of precedence. The HKSAR Government comprises a Department of Administration, a Department of Finance, a Department of Justice (DoJ), and various bureaux, divisions, and commissions.
18. There are currently 13 bureaux, each headed by a Policy Secretary, which collectively form the Government Secretariat. With certain exceptions, the heads of Government departments are responsible to the Secretaries of Departments and Policy Secretaries. The exceptions are the Commissioner of the Independent Commission Against Corruption, The Ombudsman and the Director of Audit, who function independently and are directly accountable to the CE.
19. A Political Appointment System has been introduced since 1 July 2002. Under the system, the CS, the FS, the SJ and the 13 Policy Secretaries of the HKSAR Government are political appointees. They are responsible for specific policy areas and are accountable to the CE. They are at the same time appointed as Members of the ExCo and, together with other Non-Official Members of the ExCo, assist the CE in policy making. Under the system, there remains a permanent, professional and politically neutral civil service.

Legislative Council

20. The powers and functions of the LegCo are specified in Article 73 of the Basic Law. These include enacting, amending or repealing laws in accordance with the provisions of the Basic Law and legal procedures; examining and approving budgets introduced by the HKSAR Government; approving taxation and public expenditure; receiving and debating the policy addresses of the CE; raising questions on the work of the HKSAR Government; debating any issue concerning public interests; endorsing the appointment and removal of the judges of the Court of Final Appeal and the Chief Judge of the High Court; and receiving and handling complaints from Hong Kong residents, etc.
21. Article 68 of the Basic Law provides that the LegCo shall be constituted by election. The method for its formation shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress. The ultimate aim is the election of all the members of the LegCo by universal suffrage. Annex II to the Basic Law and the relevant decision of the NPC adopted on 4 April 1990 prescribe the composition of the LegCo during its first three terms as follows –

22. Annex II to the Basic Law provides that, if there is a need to amend the method for forming the LegCo after 2007, such amendments must be made with the endorsement of a two-thirds majority of all the members of the Council and the consent of the CE and they shall be reported to the NPCSC for the record. In 2007, the NPCSC adopted a decision that after the CE is elected by universal suffrage, the election of the LegCo of the HKSAR may be implemented by the method of electing all members by universal suffrage. The motion on the method for forming the fifth term LegCo in 2012 put forth by the HKSAR Government was passed by the LegCo by two-thirds majority in June 2010 and recorded by the NPCSC in August 2010. More than 3.2 million electors could cast two votes in the 2012 LegCo General Election, one for a candidate list in a geographical constituency and one for another candidate list in the new District Council (second) functional constituency. This new functional constituency treats Hong Kong as a single constituency and candidates are nominated from elected District Council members. The fifth term LegCo in 2012 consisted of 70 members: 35 returned by functional constituencies, apart from the above-mentioned District Council (second) functional constituency, each of the remaining functional constituencies represents an important economic, social or professional sector of the HKSAR; and 35 by geographical constituencies through direct elections, where Hong Kong was divided into five geographical constituencies, each returning five to nine members.
23. As regards the method for forming the sixth term LegCo in 2016, the NPCSC adopted a decision in August 2014 that the existing formation method for the LegCo as prescribed in Annex II to the Basic Law would not be amended; and the formation method for the fifth term LegCo would continue to apply to the sixth term LegCo in 2016. The local legislation making necessary technical amendments for the 2016 LegCo General Election was passed by the LegCo in July 2015.

District Councils

24. Eighteen District Councils have been established in the HKSAR to advise the HKSAR Government on all matters relating to the well-being of residents in the districts and to promote community building through carrying out various community involvement programmes including recreational and cultural projects, and undertaking environmental improvement projects within the districts. For the fifth term District Councils (2016-2019), the HKSAR is divided into 431 constituencies, each returning one elected member. In addition, there are 27 ex-officio members (who are the chairmen of Rural Committees). The fifth term District Council ordinary election was held on 22 November 2015.

Relevant statistics

25. Relevant statistics on the political system, including the voter registration figures and voter turnout rates, are set out in Annex C.

Administration of justice

The judicial system of the HKSAR

26. The legal system is firmly based on the rule of law, right of access to court, quality legal aid services, the independent legal profession and the Judiciary which is independent of the executive authorities and the legislature.
27. Article 19 of the Basic Law provides that the HKSAR shall be vested with independent judicial power, including that of final adjudication. The courts of the HKSAR shall have jurisdiction over all cases in the Region, except that the restrictions on their jurisdiction imposed by the legal system and principles previously in force in Hong Kong shall be maintained. The courts of the HKSAR shall have no jurisdiction over acts of state such as defence and foreign affairs.
28. The courts of the HKSAR comprise the Court of Final Appeal, the High Court (which consists of the Court of Appeal and the Court of First Instance), the District Court, the Magistrates’ Courts, the Competition Tribunal, the Lands Tribunal, the Labour Tribunal, the Small Claims Tribunal, the Obscene Articles Tribunal and the Coroner’s Court. The courts hear and determine all criminal trials and civil disputes, whether between individuals or between individuals and the HKSAR Government.
29. Article 82 of the Basic Law provides that the power of final adjudication of the HKSAR shall be vested in the Court of Final Appeal of the Region, which may as required invite judges from other common law jurisdictions to sit on the Court of Final Appeal. Article 84 provides that the courts shall adjudicate cases in accordance with applicable laws and may refer to precedents of other common law jurisdictions. Article 85 provides that the courts shall exercise judicial power independently, free from any interference. Members of the judiciary shall be immune from legal action in the performance of their judicial functions.
30. Article 92 of the Basic Law provides that judges and other members of the judiciary of the HKSAR shall be chosen on the basis of their judicial and professional qualities and may be recruited from other common law jurisdictions. Article 88 further provides that judges shall be appointed by the CE on the recommendation of an independent commission composed of local judges, persons from the legal profession and eminent persons from other sectors.
31. Judges enjoy security of tenure. Article 89 of the Basic Law provides that a judge may only be removed for inability to discharge his or her duties, or for misbehaviour, by the CE on the recommendation of a tribunal appointed by the Chief Justice of the Court of Final Appeal and consisting of not fewer than three local judges. The Chief Justice of the Court of Final Appeal may be investigated only for inability to discharge his or her duties, or for misbehaviour, by a tribunal appointed by the CE and consisting of not fewer than five local judges and may be removed by the CE on the recommendation of the tribunal and in accordance with the procedures prescribed in the Basic Law.

Relevant statistics

32. The relevant statistics on the administration of justice in respect of the HKSAR for the period from 2013 to 2017 (Jan-Jul) (except where otherwise specified) are set out below. Statistics relevant to the sentencing of offenders and death in custody are set out in Annex D.
1. Incidence of violent death and life threatening crimes reported

2. Number of persons arrested for violent or other serious crimes

3. Number of reported cases of sexually motivated violence

4. Number of Police officers per 100 000 persons

5. Number of judges and judicial officers

6. Statistics on legal aid in criminal cases


Non-governmental organisations

33. Article 27 of the Basic Law guarantees that Hong Kong residents shall have freedom of association and the right and freedom to form and join trade unions, and to strike. Article 18 of the Hong Kong Bill of Rights (BOR), which corresponds to Article 22 of the ICCPR, also guarantees freedom of association. In the HKSAR, all organisations including companies, societies, trade unions and credit unions must be registered under applicable ordinances such as the Companies Ordinance (Cap. 622) or the Societies Ordinance (Cap. 151).

Exemption of tax

34. Subject to certain limitations, charitable institutions or trusts of a public character are exempt from tax under section 88 of the Inland Revenue Ordinance (Cap. 112). Charities wishing to enjoy the tax exemption may apply to the Inland Revenue Department.
35. For an institution or a trust to be a charity, it must be established for purposes which are exclusively charitable according to law. The law defining the legal attributes of a charity is based upon case law developed through court decisions.
36. A summary of the purposes that may be accepted as charitable, in accordance with case law, are –
1. relief of poverty;
2. advancement of education;
3. advancement of religion; and
4. other purposes of a charitable nature beneficial to the community not falling under any of the preceding heads.
37. While the purposes under the first three heads may be in relation to activities carried on in any part of the world, those under head (d) will only be regarded as charitable if they are of benefit to the Hong Kong community.

¹ National laws listed in Annex III to the Basic Law are at Annex B.
² The figure has included the death toll of 39 victims from the Lamma Island ferry collision on 1 October 2012.