A guide to world cities: Star of the east still burning bright

More than a decade after Hong Kong's return to China, the city continues to prosper. Teresa Machan reports

The piles of Hong Kong's CBD are testament to a city that began life as a far-flung trading outpost and grew to be one of the world's economic powerhouses. Hong Kong's financial architecture defines not only a dynamic CBD; but also the heart and soul of an entire populous. The Hong Kong Chinese live and breathe money, with few areas of everyday life untouched by the tentacles of commerce. Besides shopping and eating, (itself often inextricably tied to a business deal), gambling is a major pastime.

During the handover of Hong Kong in July 1997, many wondered how it would change. Almost 11 years on, and Hong Kong SAR (Special Administrative Region of China) has mostly changed for the better. Visitor numbers from the UK exceeded 600,000 for the first time last year, Hong Kong's economy is booming and the city's impressive collection of luxury hotels continue to upgrade and refurbish. A rebounding property market and strong consumer spending led to a rise in GDP of 6.2% year on year.

The beauty of Hong Kong for the business traveller is its accessibility. Hong Kong's size (6.9 million people are spread out over 1,200 sq km) means that its business community operates within what is essentially a very large village.

Getting around the city is easy. Hong Kong Island and Kowloon are separated by the Victoria harbour - one of the world's most beautiful - filled at any time of day with a mix of freighters, ferries, tugs, junks and yachts. The famed Star Ferry connects them, as does the cheap and efficient underground MTR (Mass Transit Railway) - where, of course, you'll find your mobile works. Taxis are everywhere, though not always the best option in rush hour.

Central is where you'll find a clutch of the city's top hotels as well as the jaw-dropping glass-and-steel jungle that is the business and financial centre. Architectural highs include an escalator ride into the 'guts' of Norman Foster's Hong Kong & Shanghai bank building - famously under 'feng-shui attack' from IM Pei's neighbouring Bank of China.

Head east along Queen's Road, Central, and you'll find the Central-Mid-Levels escalator (the world's longest covered outdoor escalator), while on Des Voeux Road, Central, you can board one of the city's double-decker trams that loops back to Central via Admiralty, Wan Chai, Causeway Bay and Happy Valley (the racetrack). Peering over all of this is Victoria Peak - Hong Kong's highest point and a must-see vantage point accessed by a mountain-hugging funicular, the Peak Tram.

Across Victoria Harbour lays the Kowloon Peninsula. Along its waterfront lay some of the city's key museums including the Cultural Centre, Space Museum and Museum of Art. When the crowds, pollution and traffic chaos get too much, duck into Kowloon Park, which - with its bird aviary, lake, maze, Chinese garden and swimming pool - is a fine example of an urban park.

For some local culture push north into Kowloon's Yau Ma Tei and Mong Kok districts to visit the lively markets and don't miss the fine Tin Hau Temple complex, where locals play mahjong in the shade of overhanging banyan trees.


Sleeping and eating

You're spoilt for choice when it comes to hotels. If you're out to impress then plump for the recently refurbished, Mandarin Oriental group flagship, the Mandarin Oriental, smack in the heart of Central. It's equivalent across the water is the famed Peninsula Hotel - with its fleet of custom-made rollers (or helipad) to whisk you from the airport. For the largest presidential suite in town and arguably the best harbour views stay at the Inter-Continental, also on the Kowloon waterfront. Back on Central the chic Four Seasons with its rooftop pools is stunning, and another flagship is the Island Shangri-La, located in Admiralty.

When dining out notable black-book choices include Spoon by Alain Ducasse and Nobu, pictured, (Inter-Continental), Philippe Starck's Felix (the Peninsula) the Mandarin Grill (Mandarin Oriental) and Summer Palace (Island Shangri-La). For neighbourhood dining head for SoHo - a vibrant social hub spawned by the mighty Mid-Levels escalator; Lan Kwai Fong - a slightly brasher drinking haunt next door; or the alfresco Knutsford Terrace are on Kowloon. For the ultimate cocktail, and dramatic views to boot, head to the 39th-floor Aqua (Kowloon).


History

Human activity on Hong Kong dates back over five millennia to Stone-Age settlements set up around 4,000BC. Han Chinese settled the territory during the seventh century AD with the first major migration from northern China into Hong Kong occurring during the Sung Dynasty (960-1279). The British East India Company made its first successful sea venture to China in 1699 and established itself over the next 15 years as Hong Kong began to trade with British merchants. At the end of the century China banned the opium trade to little effect and the first Opium War was sparked just prior to Britain's unofficial claim to Hong Kong Island in 1841. A year later Hong Kong Island was officially ceded to Britain under the Treaty of Nanking.

Japanese troops invaded Hong Kong on 8 December 1941 and occupied the city until 1945. More than 4,500 allied troops died in the Battle of Hong Kong and many civilians were killed or starved during the occupation. Prosperity returned to the colony in the post-war era and in 1984 Margaret Thatcher and Chinese premier Zhao Ziyang agreed to return Hong Kong to China in July 1997. Post-handover Hong Kong was to become a Special Administrative Region of the People's Republic of China, overseen by the chief executive of the Legislative Council, Tung Chee-hwa.

Along with the rest of Asia, Hong Kong entered a period of decline marred by Sars, bird flu and the Asian financial crisis. The downturn sparked a property crash and opposition to Tung, who was eventually succeeded by civil servant Donald Tsang in 2005. In July 2006, tens of thousands rallied in support of full democracy. While it remains a free and open society, Hong Kong residents are limited in their ability to change their government, and the legislature limited in its power to change policy.


Top tips

Currency: HK$1 = £ 0.66
Time difference: Eight hours ahead
Mobiles: IDD code is +852. UK mobile compatible.
Official languages: Chinese and English, with Cantonese the most widely spoken Chinese dialect.
Climate: Sub-tropical, characterised by high temperatures and humidity. July to September is typhoon season.
Dress code: Smart. Remember to dress for the fierce airconditioning.
Don't leave home without: Business cards. Take and receive cards with the thumb and forefinger of both hands.