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Hong Kong was originally a very low populated area of few farming and fishing villages, until Hong Kong Island became a colony of the British Empire at the end of the First Opium War in 1842.

Followed by Kowloon in 1860 after the Second Opium War.

The public-housing estate programme, the Independent Commission Against Corruption (ICAC), and Mass Transit Railway were established during the post-war decades to provide safer housing integrity in the civil service, and more-reliable transportation.

Although the territory's competitiveness in manufacturing gradually declined due to rising labour and property costs, it transitioned to a service-based economy.

Some corporations founded during the early colonial era still keep this name, including Hongkong Land, Hongkong Electric, Hongkong and Shanghai Hotels and the Hongkong and Shanghai Banking Corporation (HSBC).

Although European demand for Chinese commodities like tea, silk, and porcelain was high, Chinese interest in European manufactured goods was insignificant, so that Chinese goods could only be bought with precious metals.

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Although the source of the romanised name is unknown, it is generally believed to be an early phonetic rendering of the Cantonese pronunciation hēung góng.

When the British Union Flag was raised over Possession Point on 26 January 1841, the population of Hong Kong island was about 7,450, mostly Tanka fishermen and Hakka charcoal burners living in coastal villages.

Administrative infrastructure was quickly built by early 1842, but piracy, disease, and hostile Qing policies prevented the government from attracting merchants.

By the early 1990s, Hong Kong had established itself as a global financial centre and shipping hub.

Diplomatic negotiations with China resulted in the 1984 Sino-British Joint Declaration, in which the United Kingdom agreed to transfer the colony in 1997, and China would guarantee Hong Kong's economic and political systems for 50 years after the transfer—"one country, two systems".

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