29 June 2012
Last updated at 09:30
Chinese President Hu Jintao is visiting Hong Kong as it marks the 15th anniversary of the return to China.
The former British colony has seen many ups and downs since it was handed back on 1 July 1997.
The financial hub was immediately hit by the Asian Financial Crisis and the stock market suffered heavy losses. The government eventually intervened in August 1998, buying up shares to stabilise the market.
July 1998 saw the closure of the world-famous Kai Tak Airport in the heart of the city. The new airport in the suburbs was hit by a massive systems breakdown on its first day and the new Legislative Council, elected in May, launched an official inquiry.
The outbreak of Severe Acute Respiratory Syndrome (Sars) in February 2003 dealt a heavy blow to Hong Kong, with empty streets and a month-long school suspension.
The epidemic, plus a highly controversial national security bill called Article 23 which would have banned subversion, prompted 500,000 people to march on 1 July 2003. They demanded that Chief Executive Tung Chee-hwa step down. The bill was shelved indefinitely.
After another year of mass rallies, a series of policy failures and a public reprimand by Beijing, Mr Tung announced his resignation in March 2005, citing health reasons. Donald Tsang succeeded him, winning an uncontested by-election.
Six months later, Hong Kong Disneyland opened its doors to visitors. Mr Tung hoped to revive the Sars-stricken economy with this project, but the administration was criticised for granting too many concessions to the US entertainment giant.
In 2008, Hong Kong hosted the equestrian events of the Beijing Olympics. Hong Kong's leg of the Olympic torch relay was the only one in Chinese territory where demonstrations were seen along the route.
Recent years have seen increased tension between Hong Kong people and mainland Chinese residents. The influx of pregnant mothers from the mainland, for instance, has left many local mothers complaining that medical resources are over-stretched.
People are also concerned by the lack of affordable housing. They blame the government for allowing property prices to soar, while many underprivileged people also find it hard to rent public housing.
The suspicious death of Chinese dissident Li Wangyang further dented confidence in the Chinese government. Thousands took part in the biggest demonstration to date outside Beijing's top representative office in Hong Kong on 10 June.
After a heated contest, long-time pro-Beijing politician Leung Chun-ying was elected to succeed Donald Tsang on 1 July as the new chief executive of Hong Kong.