<P> The British Nationality Act 1981 reclassified Hong Kong into a British Dependent Territory amid the reorganisation of global territories of the British Empire . All residents of Hong Kong became British Dependent Territory Citizens (BDTC). Diplomatic negotiations began with China and eventually concluded with the 1984 Sino - British Joint Declaration . Both countries agreed to transfer Hong Kong's sovereignty to China on 1 July 1997, when Hong Kong would remain autonomous as a special administrative region and be able to retain its free - market economy, British common law through the Hong Kong Basic Law, independent representation in international organisations (e.g. WTO and WHO), treaty arrangements and policy - making except foreign diplomacy and military defence . </P> <P> It stipulated that Hong Kong would retain its laws and be guaranteed a high degree of autonomy for at least 50 years after the transfer . The Hong Kong Basic Law, based on English law, would serve as the constitutional document after the transfer . It was ratified in 1990 . The expiry of the 1898 lease on the New Territories in 1997 created problems for business contracts, property leases and confidence among foreign investors . </P> <P> On 1 July 1997, the transfer of sovereignty over Hong Kong from the United Kingdom to the People's Republic of China took place, officially marking the end of Hong Kong's 156 years under British colonial governance . As the largest remaining colony of the United Kingdom, the loss of Hong Kong effectively represented the end of the British Empire . This transfer of sovereignty made Hong Kong the first special administrative region of China . Tung Chee - Hwa, a pro-Beijing business tycoon, was elected Hong Kong's first Chief Executive by a selected electorate of 800 in a televised programme . </P> <P> Soon after Hong Kong's transfer to China, the territory has suffered coincidentally an economic double - blow: Asian Financial Crisis and the H5N1 avian flu pandemic . The then - Financial Secretary, Sir Donald Tsang, adopted a radical measure to make use of British Hong Kong foreign currency reserves and restored Hong Kong's financial stability . In December 1997, officials had to destroy 1.4 million livestock in order to contain the H5 virus from spreading . </P>

When did hong kong became independent from britain