Hong Kong is a vibrant Special Administrative Region (SAR) of China, known for its rich blend of Eastern and Western cultures, a bustling free-market economy, and its status as a leading global financial hub. Located on China's southern coast, the territory consists of the island, the Kowloon Peninsula, the New Territories, and numerous other islands, characterized by a mountainous terrain and a deep-water harbor. Since its handover from British rule in 1997, Hong Kong operates under the "one country, two systems" principle, enjoying a high degree of autonomy in its internal affairs while China remains responsible for defense and foreign policy.